AUDUSD Maintains Post-CPI Levels After Fed Hike, Watch AU Labour Data

AUD held its Tuesday gains against the USD overnight despite a dip to 0.6811 after the FOMC announced a 50bp rate hike. It bounced back soon after and is now trading around 0.6865, +0.1% on Tuesday’s NY close. Having outperformed the G10 the previous day, it underperformed with the other commodity currencies overnight. DXY finished the session down 0.3%, as strength faded during the Fed’s press conference.

• AUDUSD broke the bull trigger of 0.6851 on Tuesday and remains above this level. It opens 0.6909 on the upside. Key support is at 0.6648, the 50-day EMA.
• AUD gained versus NZD rising to 1.064. AUD lost ground to the EUR and GBP overnight to be down 0.3% at 0.6427 and 0.5525 respectively. AUDJPY was range bound and is currently about 92.97.
• Equity markets were weaker overnight with the S&P 500 down 0.6% and the Eurostoxx down 0.3%. Oil prices rose further with WTI finishing around $77.40 to be its highest in just over a week, as the IEA said prices may rise in 2023 as sanctions impact Russian supply and demand improves. Copper prices were also higher up 0.4% and iron ore is approaching $110.
• Today there is Melbourne Institute consumer inflation expectations which may decline as petrol prices have fallen the last four weeks. The November employment report also prints and is expected to show an unchanged unemployment rate and a job gain of 19k.