A$ Outperforms As Fed Spurs Risk Appetite Improvement, Jobs Data Coming Up

Aussie as well as a number of other commodity currencies outperformed the G10. The US dollar fell sharply when a May/June Fed rate cut was not categorically ruled out (USD index -0.4%). Three rate cuts are still projected by year end. AUDUSD bounced on the Fed events and subsequent US equity rally to be up 0.8% to 0.6584, close to the day’s high.

• AUDUSD is hovering just above resistance at 0.6584, March 15 high. The bull trigger is at 0.6668 while initial support is at 0.6504 and bear trigger at 0.6443.
• Aussie rose 1.1% against the yen to 99.57, close to the high. AUDNZD is up 0.4% to 1.0836. AUDEUR is 0.3% higher at 0.6029 and AUDGBP +0.3% to 0.5150.
• Equities were mixed with the S&P rallying 0.9% but Euro stoxx down 0.2%, but it had closed before the Fed announcement. Oil sold off with Brent down 1.4% to $86.18/bbl. Copper rose 0.4% and iron ore is around $106/t.
• Today employment data for February print and are forecast to rise 40k with the unemployment rate falling 0.1pp to 4.0%. Preliminary Judo Bank PMIs for March are also released.