A$ Off Highs As Equity Optimism Eases

AUD/USD is off recent highs, the pair last in the 0.6705/10 region. We were around 0.6730 a shot while ago, while at the start of the session we got to 0.6740. Support is still evident sub 0.6700 (lows of 0.6687). The move off highs has reflected lower US equity futures, which remain positive but are off session highs (+0.4%, versus earlier highs above 0.6%). EU equity futures are also away from highs, last near ~+0.50%, we were up over 1.4% earlier in the session.

• Regional Asian equities are mostly lower, with the exception of China stocks, which are still higher post Friday's RRR cut.
• Commodities are mixed, with iron ore tracking lower (last under $127.50/ton), but copper is higher.
• Yield spreads remain volatile, given swings in US sentiment. The 2yr spread, in the government bond yield space was last around -102bps, down from recent highs near -80bps.
• Earlier RBA Assistant Governor Kent stated that monetary policy lags may be a bit longer in the current cycle given the high proportion of fixed rate mortgages. The central bank will also consider (among other issues) the banking crisis at the April board meeting in determining monetary policy.