February 18, 2025 21:27 GMT
AUD: A$ Outperforms On Cautious RBA Easing, Wages Coming Up
AUD
While the G10 fell against the US dollar (USD BBDXY +0.2%), which was boosted by higher yields, AUDUSD was only slightly lower at 0.6352. RBA Governor Bullock’s warning not to expect a series of rate cuts supported the Aussie as did stronger equities.
- The bull theme remains intact as AUDUSD continues to hold above key resistance at 0.6331. The move above this level highlighted a stronger reversal and opened up resistance at 0.6414. Initial support is at 0.6305, 50-day EMA.
- Kiwi underperformed on Tuesday ahead of today’s RBNZ decision. In contrast to the RBA’s cautious 25bp cut, the RBNZ is unanimously expected to ease by another 50bp which would bring the total to 175bp. As a result, AUDNZD returned above 1.11 and is now up 0.5% at 1.1135.
- AUDJPY is 0.3% higher at 96.60. AUDEUR rose 0.3% to 0.6080, close to the intraday high. AUDGBP is moderately higher at 0.5038 after a high of 0.5051.
- Equities were stronger with the S&P up 0.2% and Euro stoxx +0.25%. Oil also rallied with Brent +0.7% to $75.75/bbl. Copper fell 1.7% though while iron ore is higher at around $107/t.
- Today Q4 wages print and are expected to rise 0.8% q/q and 3.2% y/y down from 3.5% in Q3. Westpac’s leading index for January is also released.
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