A$ Outperforms On More Hawkish RBA, Governor Bullock Coming Up

Aussie outperformed on Tuesday with AUDUSD rising 0.4% to 0.6365. It made a high of 0.6380 earlier after a falling below 0.6340. RBA minutes from the October meeting acknowledged the Board is concerned about upside risks to inflation. The USD index was flat.

• Conditions remain bearish for AUDUSD with focus on 0.6286, the bear trigger. Initial resistance is at 0.6445 but a break of 0.6522 is needed to highlight a reversal.
• AUDNZD headed towards 1.08 on Tuesday after a lower-than-expected Q3 NZ CPI report. It rose 0.9% to 1.0795. AUDJPY is up 0.6% to 95.33. AUDEUR traded above 0.6000 through the day and finished 0.2% higher at 0.6018. AUDGBP is 0.6% higher at 0.5224.
• Equity markets were flat to higher with the S&P unchanged, Euro stoxx up 0.1% and the FTSE +0.6%. Oil prices rose over a percent with Brent at $90.88/bbl. Copper is 0.3% higher and iron ore is around $118/t.
• At 0930 AEDT Governor Bullock will participate in a “fireside chat” at the AFSA annual summit panel. RBA’s Smith, Head of International Department, speaks at 1040 AEDT. There is also the Westpac leading indicator for September.