AUD Mainly Range Trading Despite China Covid Situation

AUDUSD is slightly off of its earlier lows and is now trading close to 0.6615, as the USD has moved down 0.2%. The growing number of Covid infections in China hasn’t resulted in another leg down in AUD so far today.

• AUDUSD reached a low of around 0.6600 before climbing slowly to a high of 0.6625. Some support came from higher China property stocks, as regulators urge onshore banks to support the sector. Although there hasn’t been much spill over elsewhere (like iron ore etc).
• Elsewhere equity markets are mixed across the region. The ASX is up 0.6% and the Nikkei +0.7% but the Hang Seng is 1.2% lower with tech -2% and the CSI 300 -0.4%, despite some property market support. Oil has held up after OPEC+ denied any output increases overnight and Brent is trading 0.4% above the NY close around $87.80/bbl.
• AUDNZD is lower around 1.081 ahead of tomorrow’s RBNZ meeting (see RBNZ preview here). AUDGBP is also down slightly to 0.5580. AUDEUR and AUDJPY have been trading in tight ranges.
• Tonight at 1800 AEDT RBA Governor Lowe speaks on “Price Stability, the Supply Side and Prosperity”. It can be listened to at this link. There is little data again tonight but there are a number of Fed speakers.