A$ Rallies On Better Risk Appetite, Focus On RBA Minutes

The Aussie outperformed the G10 on Monday as risk appetite improved and the greenback fell on the back of a sharp fall in the May New York Empire manufacturing index. AUDUSD is 0.8% higher and is trading around 0.6701 after reaching a high of 0.6709 earlier. The USD index is 0.2% lower.

• Resistance to watch is 0.6713, the 50-day EMA but a break of 0.6818, the May 10 high, is needed to reinstate the bullish theme. The bear trigger is 0.6565, the March 10 low.
• AUDNZD is flat and after a high of 1.0765, it is now trading around 1.0739. AUDJPY is up 1.1% to 91.17. AUDEUR rose 0.7% to 0.6162 and AUDGBP +0.3% 0.5349.
• Equity markets were generally higher with the S&P rising 0.3% and the FTSE +0.3% but the Eurostoxx flat. Oil prices unwound most of Friday’s losses with WTI up 1.8% to around $71.33/bbl. Copper prices are 0.4% higher. Iron ore rallied and is now above $104/t.
• Today the RBA minutes from the May meeting are released and will be scrutinised for the reason why the Board hiked rates after pausing. There is also May Westpac consumer confidence.