AUD/USD: Negative Aus Data Mounts, Knocks Down Yield Spread

The macro bond yield spread correlation runs above 50%, so the renewed sharp drop in Aus yields should lead to more negative capital flow dynamics that may weight in the Aussie.
The level of the Aus-US bond yield spread is back down approaching its year-low of -0.75bp, time when the exchange rate touted 0.70c. It now remains considerably higher, which implies a decent sell-side value level if equities or the DXY trends can revert its current course.
The micro backdrop is not conducive of follow-through selling as the performance of equities, DXY , Yuan continue to be an impending factor capping the downside.
The breakout of an ascending trendline, at the bare minimum, should see the market profile permutate into range-bound conditions following the poor Westpac consumer confidence.