AUDUSD Range Trading, RBA On Tuesday The Focus

AUDUSD has started the week slightly lower as oil prices soar following OPEC’s announcement to reduce output 1.1mbd from May. It had eased over Friday to 0.6685 and is now trading around 0.6680. The USD was 0.5% stronger on Friday.

• Aussie was one of the mid-range performers in the G10 on Friday. AUDNZD is currently up 0.2% to 1.0703 and AUDJPY +0.2% to 88.99. Aussie is +0.1% against the euro at 0.6174 and versus the pound at 0.5426.
• Trend conditions for the AUD are unchanged and remain bearish. Gains since March 10 still appear to be corrective. The 20-day EMA has been broken but key resistance at the 50-day of 0.6753 is intact. If breached, then that would open up a stronger short-term recovery. Initial support is at 0.6625.
• Equity markets were stronger on Friday with the S&P 1.4% higher and the Eurostoxx +0.7%. VIX fell to 18.7%. Brent crude is up 7.4% so far during the APAC session to $85.77/bbl following OPEC’s decision. LME metal prices rose 0.6% last week. Iron ore is down to $123.60/t after Friday’s high of $126.10.
• Today the Melbourne Institute’s inflation gauge for March, home loans for February and building approvals print. The focus of the week will be the RBA meeting tomorrow where the consensus expected no change in rates.