AUD Firmer After Solid Trade Report, DXY Extends Gains

AUD has added a handful of pips against all of its G10 peers after Australia's trade surplus widened more than forecast, reaching a record high. Worth noting A$994mn of options with strikes at $0.7800 & A$1.4bn of AUD puts with strikes at $0.7820-25 will expire today. The AFR reported that Australia's Cleanaway is in advanced talks with France's Suez to buy the latter's Australian business for about EUR2bn, but there was little reaction to the news in the FX space.

• The DXY continued to push higher, grinding past yesterday's high, ahead of today's address from Fed Chair Powell.
• GDP came under a modicum of pressure as concerns over the UK's relationship with the EU resurfaced after London suggested that it would unilaterally tweak trade rules regarding Northern Ireland.
• PBOC fixed its USD/CNY mid-point at CNY6.4758, just 4 pips above sell side estimates. China's key annual political meetings begin today, where focus will be on the policy agenda for the next five year plan.
• On the radar today, we have U.S. initial jobless claims, factory orders & final durable goods orders, EZ unemployment & retail sales as well as speeches from Fed's Powell, ECB's Knot & Centeno and Riksbank's Skingsley.