AUDUSD Outperforms G10, Now Waiting For The RBA

AUDUSD trended lower overnight, as the USD strengthened in anticipation of the Fed, and has started the day just under 0.6400.

• There was general G10 weakness versus the USD, as the DXY rose 0.7%, except for NZ. The commodity currencies outperformed the rest with AUD the third best performer. The AUD reversed its losses against GBP and EUR to finish around 0.5575 and 0.6475 respectively.
• The market is looking at 0.6547, October 4 high and 50-day EMA, as the next resistance level for the AUDUSD in its move upward. The broader technical trend is bearish though and the initial support is 0.6303 (October 25 low).
• Equity markets were down in the US overnight but generally higher in Europe. VIX started the day higher but ended close to its Friday low at 25.9%. Oil prices continued to trend down overnight, as growth concerns, particularly regarding China, persisted. WTI is now trading around $86.50 and Brent $92.50. Copper prices fell 1.5% as the growth outlook outweighed tight supply. Iron ore is trading just above $77.
• The focus of today will be the RBA meeting with the announcement due at 1400 AEDT. A further 25bp hike is widely expected (see MNI RBA Preview - November 2022). Governor Lowe will then speak at the Reserve Bank Board dinner at 1920 AEDT. This event can be watched here.