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AUD Outperforming After RBA Hikes 25bps & Flags More Hikes To Come


AUD is the strongest performer in the G-10 space at the margins, with the greenback moderately weaker as its gives back some post NFP gains.

  • AUD/USD prints at $0.6925/30 ~0.7% firmer, the pair was up as much as 1% in the aftermath of the RBA decision. The central bank raised the cash rate 25bps and noted in its statement that rates will need to rise further and more than once. Earlier the Dec trade balance had printed a touch below expectations.
  • USD/JPY is ~0.3% softer, last printing ¥132.25/35. The 20-day EMA at 130.34 is the next downside target. Dec Labour Cash Earning rose 4.8% vs 2.5% exp, Dec Real Cash Earning were also on the wires printing at 0.1% vs -1.5% exp. Jan Household spending fell 1.3% more than the exp -0.4%. Dec, P Coincident Index printed in line with expectations
  • NZD is also firmer, last printing $0.6320/25. The pair met resistance above its 50-day EMA, paring gains to sit at current levels. Jan ANZ Commodity Prices fell 1%, the prior read was -0.1%.
  • EUR/USD and GBP/USD are both marginally firmer, with the moderate weakness in the USD boosting the pairs.
  • Cross-asset flows see e-minis up ~0.1%, although off session highs, and BBDXY down ~0.1%.
  • US Trade Balance, which headlines an otherwise thin data slate. Fed Chair Powell speaks today for the first time since last week's Fed meeting.

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