Free Trial

AUDUSD Recovers As Geopolitical Tensions Ease

AUD

AUDUSD has given up some of its overnight gains over the morning session and is now trading around 0.6760, close to NY closing levels. The USD strengthened as geopolitical tensions escalated after a report of a Russian-made missile exploding in Poland but eased again after US President Biden said it wasn’t fired from Russia.

  • AUDUSD reached an intra-session high of 0.6772 ahead of the Australian wage data but couldn’t maintain its break above the key resistance level of 0.6768. It then moderated on USD strength, despite wages growth pointing to another 25bp RBA hike in December, and reached a trough of 0.6732. It bounced on reduced NATO/Russia risk and news that China has approved 8 fixed asset projects.
  • Equities are weaker in the region with the ASX off 0.3%, the Hang Seng -0.7% and the CSI -0.3%, as risk appetite deteriorated. US e-minis are down 0.15%.
  • AUDJPY has recovered to around overnight highs as geopolitical risks abate. AUDNZD has been trading in a tight range but Aussie has lost some of its gains against the euro to be around 0.6510.
  • Iron ore prices are trading slightly higher at $93/tonne. While oil prices are range trading around $86.60, slightly below the NY close.
  • There is UK CPI data later followed by US retail sales for October. There are also a number of ECB speakers. Tomorrow Australian October employment data prints.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.