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AUDNZD Weaker On Hawkish RBNZ, Otherwise AUD Range Trading


AUDUSD and its crosses have been mostly trading in tight ranges today. The DXY is down 0.1%, on lower Treasury yields and better risk environment. AUDUSD is around 0.6645 after reaching a low of 0.6636 and a high or 0.6660 earlier in the session.

  • AUDNZD reacted marginally to the RBNZ’s outsized but expected 75bp hike. AUDNZD reached a high of 1.0827 pre the meeting and then a low of 1.075 afterwards. It is currently trading close to this at around 1.077. The cash rate differential with Australia is now 150bp.
  • Equity markets are generally stronger across the region driven by better risk sentiment. ASX is up 0.5% (highest level since early June), Hang Seng is flat% but China’s CSI 300 is down -0.2%. E-minis are down slightly but close to NY closing levels. WTI oil prices are also range trading around NY closing level of $80.95/bbl. Iron ore is in the $93-94 range.
  • Tonight the Global S&P preliminary PMIs print for Europe and the US. Also, the minutes from the last FOMC meeting are published plus a swathe of US data including unemployment claims, durable goods orders and Michigan consumer sentiment.

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