A$ Holds Onto Post-RBA Gains, Lowe, Bullock & GDP Coming Up

The A$ held onto its gains post the surprise RBA hike to 4.1%. It jumped to 0.6671 on the decision and then reached an intraday high of 0.6685, the highest since mid-May, and is now trading at 0.6671. It outperformed the G10 along with NZD and CAD. The USD index is 0.1% higher.

• Tuesday’s rally marks an extension of the recovery from the May 31 low. Resistance at the 50-day EMA has been cleared at 0.6653, which opens up 0.6710, the May 16 high. The bear trigger is 0.6458.
• Aussie is up 1% versus the euro to 0.6238 and 0.9% against the pound to 0.5369. AUDNZD is 0.7% higher to 1.0975, and approaching 1.10 after the RBNZ indicated it was done while the RBA that there was more to do. AUDJPY is +0.8% to 93.11.
• Equity markets were stronger with the S&P up 0.2%, the FTSE +0.4% and Eurostoxx +0.05%. Oil prices were lower with WTI down 1% to $71.45/bbl. It is currently around $71.60. Copper prices were flat and iron ore is just above $108/t.
• Today at 0920 AEST RBA Governor Lowe speaks (listen here) and Deputy Governor Bullock at 0950 AEST (listen here). There is also Q1 GDP data which is expected to rise 0.3% q/q.