AUD Continues Recovery Post-RBA

AUD the biggest G10 gainer so far on Wednesday, AUD/USD 11 pips higher recovering after a post-RBA loss yesterday and supported by further gains in the commodity complex. RBA's head of economic analysis Jones spoke and was optimistic about the recovery from the pandemic so far. Markets await GDP data.

• NZD/USD is flat. NZD took a hit after a weak GDT auction on Tuesday while , RBNZ head of financial markets Rayner said that the balance sheet will remain large for a long time, and that new monpol tools will likely remain mainstream for as long as global rates remain near record lows. Data earlier showed New Zealand terms of trade rose 0.1% Q/Q against estimates of a 0.3% decline.
• Yen is softer, USD/JPY rising 7 pips, data earlier showed Japan's monetary base rose 22.4% Y/Y in May after a 24.3% rise in April, the nominal end of period figure was JPY 651.0tn. Events remaining on the economic docket on Wednesday include the BoJ rinban operations and a speech from dovish BoJ member Adachi who said previously the bank must maintain its stimulus programme.
• Yuan is stronger in early trade, reversing some of the weakness from Tuesday. Markets will watch today's fix to see if the PBOC indicate a preference for a weaker yuan for the fourth consecutive session after increasing the RRR on Monday.
• USD/CAD around 11 pips lower as oil continues to advance while markets assess healthy GDP data from yesterday.