AUDUSD Continues Range Trading, RBA Minutes Coming Up

AUDUSD fell 0.1% to 0.6660 on Monday and the pair continues to trade around this level at 0.6657. It was around 0.6680 but then fell sharply following the lower-than-expected US manufacturing ISM. It reached a low of 0.6644 and then recovered somewhat helped by stronger US equities. The USD index rose 0.1%

• AUDUSD continues to range trade between resistance at 0.6714 and support at 0.6576, which are both important short-term directional triggers. Moving average studies highlight an uptrend.
• AUDJPY broke above 107.50 and is now just below this level, its highest since 2007. The pair continues to be pushed higher by widening yield differentials.
• AUDEUR broke below 0.6200 to a low of 0.6192 as the euro recovered following the first round of France’s parliamentary elections. The pair is now down 0.4% to 0.6199.
• AUDNZD is 0.2% higher at 1.0964 and AUDGBP is down 0.2% to 0.5264.
• Equities were stronger with the S&P up 0.3% and Euro stoxx +0.7%. Oil prices rose sharply with Brent up 1.9% to $86.63/bb. Copper is 0.5% higher and iron ore is around $110/t.
• Today the June meeting RBA minutes are published. The minutes are likely to be watched for details re the possible upside risks to inflation in the wake of the higher-than-expected May CPI outcome.