A$ Lower As Equities Consolidate Ahead Of US CPI

The Aussie was a mid-range performer in the G10 on Tuesday, as equity performance was lacklustre. AUDUSD trended down in the hours ahead of the budget but traded in a narrow range following it. It is down 0.3% to 0.6763 after reaching an intraday high of 0.6787 followed by a low of 0.6747. The USD index rose 0.3% ahead of today’s US CPI data.

• The focus for AUDUSD is currently on key resistance at 0.6806, the April 14 high, and a clear break of this level would strengthen the bullish case and open 0.6861. Key support is at 0.6565, the March 10 low, and clearance of this would be bearish.
• Aussie is down 0.2% against the yen to 91.43. AUDNZD is 0.2% lower to 1.0673, as it has been unable to hold gains above 1.070. AUDEUR is up 0.1% to 0.6168 while AUDGBP is down 0.3% to 0.5357.
• Equity markets were generally lower with the S&P down 0.5% and the Eurostoxx -0.6% but the DAX flat. The VIX was higher at 17.7%. WTI oil prices dipped to $71.34/bbl but then bounced back following the announcement to refill the US SPR. It is currently up 0.5% to $73.50. Copper is down 0.6% while iron ore is steady around $107/t.
• There are no data in Australia today. Treasurer Chalmers gives his post budget address at the National Press Club at 1230AEST today.