Antipodeans Pressured In Asia

The Antipodeans have been pressured through the Asian session on Tuesday, the AUD is the weakest performer in the G-10 space however there has been little reaction thus far to the RBA leaving the cash rate at 4.10%.

• AUD/USD prints at $0.6420/25, the pair is ~0.6% lower today. The RBA noted some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe. Support comes in at $0.6365, low from Aug 17 and bear trigger, and $0.6285, low Nov 4 2022.
• Kiwi is also pressured, NZD/USD is down ~0.4% last printing at $0.5915/20. Firmer US Tsy Yields and a weaker than forecast Caixin Services PMI, as well as lower regional equities have weighed on sentiment. Bears now target the low from 25 Aug ($0.5886) which opens $0.5841 (low from 10 Nov 22).
• Yen is marginally weaker, USD/JPY is ~0.1% firmer however a ~30 pip range has persisted for much of the session and there has been little follow through on moves.
• Elsewhere in G-10, the Scandies are pressured although liquidity is generally poor in Asia.
• Cross asset wise; Hang Seng is down ~1.5% and e-minis are ~0.1% lower. US Tsy Yields are ~3bps higher across the curve. BBDXY is up ~0.1%.
• Eurozone PPI provides the highlight in Europe with the final read of August Services PMI from France and Germany also due.