A$ Subdued Going Into Tuesday’s RBA Decision

AUDUSD has started the week close to Friday’s close at around 0.6612 but well off the intraday low of 0.6574. On Friday it underperformed the G10, apart from the yen and NOK. The USD index was 0.2% higher following generally stronger-than-expected data.

• The move below 0.6620, the April 10 low, has opened up 0.6565, the March 10 low and bear trigger. A break of this level would confirm the resumption of the downtrend that started on February 2. Key resistance is at 0.6806, the April 14 high.
• Aussie is up 1.4% versus the yen to 90.08, the highest since April 20. AUDNZD is down 0.8% to 1.070 ahead of Tuesday’s RBA decision. It reached an intraday low of 1.0683 on Friday, the lowest since April 11. AUDGBP fell 0.8% to 0.5264 and AUDEUR -0.2% to 0.6004.
• Equities generally rallied on Friday with the S&P up 0.8% and the FTSE +0.5% but the Eurostoxx was flat. After some nervous trading earlier in the week, oil prices rose on Friday. WTI was up 2.2% to $76.46/bbl. The LME metal price index fell 1.3% on the week but rose 0.7% on Friday. Iron ore is trading around $104.30/t.
• The final March Judo Bank manufacturing PMI for April and the Melbourne Institute’s inflation gauge are released today. But the focus of the week will be the RBA meeting on Tuesday.