May 02, 2023 04:55 GMT
AUD Firms in Asia As RBA Hikes 25bps
The AUD is the strongest performer in the G-10 space at the margins on Tuesday. The RBA lifted the cash rate 25bps to 3.85%, the market had been expecting rates to be held steady at 3.60%.
- AUD/USD prints at $0.6695/0.6700, the pair has rallied ~1% since the RBA decision. We have breached the 20-Day EMA ($0.6673), bulls now target a move above $0.67.
- AUD/NZD is ~0.7% firmer, the cross is back above the $1.08 handle and has breached the 20-Day EMA. Bulls now target the 200-Day EMA at $1.0868.
- Kiwi is ~0.2% firmer, NZD/USD prints at $0.6180/85. However the pair has not yet been able to sustain a break of the 20-Day EMA ($0.6187) having met resistance here through today's Asian session.
- Elsewhere in G-10 ranges have narrow with little follow through on moves.
- Cross asset wise; e-minis are a touch softer and BBDXY is ~0.1% lower. US Treasury Yields are little changed from Mondays closing levels across the curve.
- Flash European Manufacturing PMIs and CPI headline the European session today. Further out we have JOLTS Job opening, Factory and Durable Goods Orders.