A$ Weaker Following BoC Hike, Bullish Trend In Place

The Aussie underperformed most of the G10, with the JPY and NZD, as CAD outperformed on the BoC’s surprise rate hike. AUDUSD reached a high of 0.6717 before the BoC announcement but is now trading around 0.6655, just above the 50-day EMA. The USD index was flat.

• The break of resistance at the 50-day EMA signals scope for a stronger recovery and has opened up 0.6733. Initial support is 0.6609, the 20-day EMA, with 0.6458 the bear trigger.
• Aussie is up 0.4% versus kiwi and has breached 1.10 to be currently at 1.1019. AUDJPY is up 0.1% to 93.23. AUDEUR is down 0.3% to 0.6220 and AUDGBP -0.4% to 0.5350.
• Equity markets were slightly softer with the S&P down 0.4% and the Eurostoxx -0.1%. VIX was stable at 13.9%. WTI rose around a percent to $72.44/bbl after falling through the APAC session. Copper fell 0.4% and iron ore is just below $110/t.
• Today trade data for April print and the trade surplus is expected to narrow slightly to $13.65bn. There is also March industrial disputes data.