A$ Weakens On Neutral RBNZ Spillover, Lacking Equity Support

Aussie has weakened driven by negative spillover from the neutral sounding RBNZ. There is also no support from equities with both HK and China selling off. AUDUSD is down 0.3% to 0.6522, close to the intraday low. Initial support is at 0.6496. The USD index is 0.1% higher.

• AUDUSD fell briefly on the lower-than-expected January CPI outcome which came in unchanged at 3.4% y/y. But then fell sharply following the RBNZ decision and has continued trending lower since then. With kiwi underperforming, AUDNZD is 0.7% higher at 1.0684, close to the intraday high.
• AUDJPY is down 0.3% to 98.17 after a high of 98.55 pre RBNZ. AUDEUR is 0.2% lower at 0.6020 and AUDGBP -0.2% to 0.5149.
• Equity markets are mixed with the ASX flat, Hang Seng down 0.5% but KOSPI up 0.7%. The S&P e-mini is flat. Oil prices are lower after rallying yesterday. WTI is down 0.4% to $78.55/bbl. Copper is 0.2% lower and iron ore is around $116/t.
• Later the Fed’s Bostic, Collins, Williams and BoE’s Mann speak. US Q4 GDP revisions are released as well as January inventories and trade balance. The European Commission February survey also prints.