Reasons for AUDUSD upside

Fundamentals and technicals

The AUDUSD is poised to potentially break out higher

1. Treasury Secretary Kennedy said that the Australian economy exceeded expectations and the labour market participation was somewhat surprising (in a good way)

2. The USD remains weak after US 10 year yields fell on a dovish Powell and weak CPI release yesterday.

Expect buyers on break higher of the marked trend line. (0.7760)

The risk is if the initial jobless claims data out later skews the USD weaker story.

However, hard to see anything changing the broad reflationary trade narrative. Certainly not on one data point.