Free Trial

AUD Firms in Asia As RBA Hikes 25bps

FOREX

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.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.