CANADA TO PUBLISH FISCAL UPDATE ON DEC. 16

MNI BRIEF: Inflation Expectations Tick Higher - NY Fed

MNI BRIEF: China Passenger Car Sales Up In November Y/Y

MNI BRIEF: Mexico Inflation Down To 4.55% In November

MNI China Daily Summary: Monday, December 9

MNI BRIEF: China To Strengthen Policy Easing In 2025: Poliburo

MNI:US OCT WHOLESALE INV 0.2%; SALES -0.1%

EZ/UK Bond Supply Calendar: Austria, UK Auction on Tuesday

MNI BRIEF: China Nov CPI Slows To 5-Month Low Of 0.2% Y/Y

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

AUD/USD Falters Back Below 20-day EMA, RBA SoMP Out Today

AUD

AUD/USD lost a little over 0.5% for Thursday's session to be the worst performing G10 currency, albeit at the margins. By late NY trade the pair was back in 0.6365/70 region, which is where we currently track. Earlier highs were around 0.6430. The A$ was weighed by higher US yields and a pull back in US equity sentiment.

  • Thursday's late weakness has pulled the currency sub its 20-day EMA (near 0.6390). The Oct 31 low is 0.6315, while 0.6270, Oct 26 low is the bear trigger. 0.6522/23 is seen as key resistance on the topside.
  • The A$ was weighed by the resurgent US yield backdrop following Fed Chair Powell comments (not yet confident Fed is sufficiently restrictive), and a poor 30yr bond sale. Since the RBA decision earlier in the week, AU-US yield differentials have rolled over sharply.
  • From above +20bps, the 10yr government bond yield spread is at risk of ending this week in negative territory.
  • Commodity indices were mostly down, with the Bloomberg base metal index falling 0.41%, although we are around flat for the week. Iron ore is still holding up well, near $125/ton.
  • The main focus today is the RBA Statement on Monetary Policy, where the central bank's updated forecast profile will be eyed following Tuesday's +25bps hike.
BulletMarketsForeign Exchange BulletsHomepage
BulletMarketsForeign Exchange BulletsHomepage

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.