A$ Down Ahead Of RBA As Risk Appetite Deteriorates

AUDUSD began the day range trading just under 65c but took a step down when Asian equity markets opened. The weaker risk tone is weighing on Aussie ahead of the RBA decision later today. AUDUSD is down 0.2% to 0.6475, just off the intraday low of 0.6472. The USD index is 0.1% higher.

• AUDJPY is 0.2% lower to 97.16, close to today’s low. AUDNZD is little changed at 1.0883. Aussie is down 0.2% against the euro and pound at 0.6044 and 0.5248 respectively.
• Equity markets are generally weaker with the ASX down 0.4% and the Hang Seng -0.8%. S&P e-minis are 0.1% lower. Oil prices are also struggling against softer risk appetite with WTI down 0.4% to $80.53/bbl. Copper is down 0.5% and iron ore is just above $123/t.
• Economists expect the RBA to increase rates 25bp today (see MNI RBA Preview - November 2023). The decision is announced at 1430 AEDT and the statement can be found here.
• Later the Fed’s Kashkari, Goolsbee, Barr, Schmid, Waller and Logan speak. ECB’s de Guindos, Enria and McCaul also appear. On the data front there is only the September US trade balance and German IP.