A$ Rebounds, AUD/JPY Back to 96.00

AUD/USD dipped just below 0.7160 post the Asia close but rebounded strongly thereafter. We got back close to post RBA highs of 0.7240, before settling at 0.7230/35, which is where we currently sit.

• To recap, US equities finished higher, albeit in a volatile session. The VIX index though declined to fresh lows of 24%, levels last seen in late April.
• US yields eased off recent highs, with no obvious catalyst. This should see yield differentials stay in favor of the AUD today, following yesterday's larger than expected RBA rate rise.
• AUD is the best performing currency in the past 24 hours. AUD/JPY dipped back to 95.00 after the RBA, but rallied back to 96.00. We open this morning just above 95.90.
• Commodities were mixed, iron ore holding close to recent highs, while Brent crude dips sub $120/bbl were supported. Base metals slid though, the Bloomberg index losing 0.6%, reversing part of Monday's1.48% gain.
• There is no major data released today.
• From a technical standpoint, AUDUSD remains above 0.7139, the 20-day EMA. S/T conditions are bullish. The pair has traded above both the 20- and 50-day EMAs. This strengthens current conditions and signal scope for a climb towards 0.7343, a Fibonacci retracement.