A$ Weakens Further Following RBA Pause

The Aussie dollar was the worst performer in the G10 on Tuesday following the RBA’s decision to leave rates unchanged at 3.6%. AUDUSD fell on the announcement and trended lower through most of the day. It reached an intraday low of 0.6721 and is now trading around 0.6754. The USD index is 0.5% lower following disappointing job openings data.

• Key short-term support for AUDUSD is at 0.6625, the March 24 low. A break through this would signal a bearish reversal. The breach of the 50-day EMA on Monday marked a stronger short-term bullish condition. Initial resistance is at 0.6793, the April 4 high.
• Aussie is down 0.7% against the kiwi to 1.070, as the RBNZ is expected to hike 25bp today in contrast to the RBA’s pause. AUDJPY fell 1.1% to around 88.88. AUDEUR is down 0.9% to 0.6165 and AUDGBP -1.2% to 0.5402.
• Equity markets were mixed with the S&P down 0.6% and the FTSE -0.5% but the Eurostoxx up 0.1%. Oil prices held onto their gains with the WTI rising 0.6% to $80.88/bbl. Copper fell 1.7% and iron ore was also lower at $118.25/t following softer data.
• Today the final Judo Bank services and composite PMIs for March are released. Then at 1230 AEST RBA Governor Lowe speaks at the National Press Club on “Monetary Policy, Demand and Supply”.