A$ Trends Higher Driven By Positive Equity Sentiment, Powell Speaks Later

AUDUSD has been trending higher today and seems to be driven by equity sentiment. It fell early in the session to a low of 0.6493 but has now recovered to be 0.2% higher at 0.6514. It is outperforming the other majors helped by the improvement in risk appetite. The USD index is flat ahead of Fed Chair Powell’s testimony later today.

• AUDNZD is trying to break above 1.07. The pair is up 0.1% at 1.0697 having reached 1.0701 briefly. AUDJPY is 0.1% higher at 97.67 but off the day’s low of 97.38. AUDEUR is up 0.2% to be above 0.6000 again. AUDGBP is 0.2% higher at 0.5130.
• Aussie looked through the on consensus Q4 GDP data. It rose 0.2% q/q and slowed to 1.5% y/y from 2.1%, but was in line with RBA forecasts. It showed a 0.5% q/q improvement in productivity.
• Equities are mixed with the ASX flat but the Hang Seng up 1.9%. The S&P e-mini is moderately higher. Oil prices are little changed with WTI up 0.2% to $78.28/bbl. Copper is flat and iron ore is around $116-117/t.
• Later the focus will be on Fed Chair Powell’s testimony before Congress. The Fed’s Daly and Kashkari also speak and the Beige Book is published. In terms of data, February ADP employment, January JOLTS job openings and euro area January retail sales print. The BoC meets and the ECB’s Buch appears.