A$ Underperforms On Safe Haven Buying

The Aussie underperformed the G10 again, except for Scandi, as risk appetite pulled back. AUDUSD is down 0.4% to around 0.6723, off its intraday low of 0.6677. The USD index is 0.3% higher on safe haven buying.

• Initial support for AUDUSD is at 0.6651, the April 3 low, with resistance at 0.6793, the April 4 high. A break lower through 0.6625, the March 24 low, would signal a bearish reversal but for now pullbacks are seen as corrective.
• AUDNZD is down 0.6% to 1.0637 after the RBA paused but the RBNZ hiked by a larger-than-expected 50bp. AUDJPY is 0.8% lower at 88.19. AUDEUR is at 0.6163 and AUDGBP 0.5395.
• Equity markets were generally lower with the S&P down 0.25%, the Eurostoxx –0.4% but the FTSE up 0.4%. WTI oil prices fell 0.4% to $80.41/bbl after two days of gains following OPEC’s output cut decision. Copper rose 0.4% and iron ore is down to around $117/t.
• Today the RBA’s Financial Stability Review is published and is likely to focus on mortgage risks. There is also trade data for February, which is expected to show a narrowing of the surplus to $11.22bn.