AUD Outperforms, USD Moderately Pressured

The AUD is the strongest performer in the G-10 at the margins, benefiting from improved risk sentiment as regional equities firm and US Treasury Yields tick lower today. The USD is moderately pressured, BBDXY is down ~0.1%.

• AUD/USD prints at $0.6690/95 ~0.4% firmer in todays dealing. The aussie has looked through weakness in Iron Ore prices, futures in Singapore fell ~2.5% to $120/tonne as Chinese steel demand has not picked up despite peak construction season approaching.
• AUD/NZD printed its highest level since 10 March and sits a touch below the $1.08 handle.
• Kiwi is marginally firmer, NZD/USD was pressured after Westpac lowered its 2022-23 NZ milk price forecast to $8.4/kg. However the improving risk sentiment saw the pair firm off session lows to sit ~0.1% higher at $0.6200/05.
• USD/JPY was offered after testing resistance at ¥132.65 the high from 20 March. The pair fell ~0.4% from peak to trough before marginally paring losses to deal at ¥132.45/50.
• GBP is marginally firmer up ~0.1% benefiting from the moderate USD pressure. EUR is little changed and has observed narrow ranges in Asia.
• Cross asset wise, Hang Seng is ~2% firmer and e-minis are up ~0.1%. US Treasury Yields are softer, the 10 Year Yield is down ~2bps.
• In Europe today UK CPI provides the headline. However, the Fed rate decision and Powell's post meeting press conference are today's highlight, our preview is here.