AUDUSD Recovers Slightly As China Eases Covid Measures

MNI (Australia) - AUDUSD has recovered slightly after its fall overnight. It is up 0.3% to around 0.6720, just below the intraday high of 0.6730, but it is still down 1% on Friday’s NY close. Aussie fell briefly on data showing the first current account deficit since Q1 2019 but rose again soon afterwards supported by news of a drop in Covid cases in China and an easing of testing requirements.

• AUD crosses are trading close to their intraday highs. AUDJPY is up 0.2% to around 91.77. AUD is also up 0.2% versus EUR and GDP at 0.6395 and 0.5505 respectively. AUDNZD continues to trade sideways in tight ranges around 1.06. The DXY is down 0.2%.
• Equity markets in the region are mixed so far today with the ASX down 0.2% and Hang Seng -0.6% but the CSI 300 +0.1%, Nikkei +0.1% and S&P e-minis +0.2%. WTI oil prices are up around 0.8% to $77.50/bbl as the demand outlook from China has improved. Iron ore is also up on demand prospects at around $108.50.
• The RBA meeting is the focus of the rest of the day with the announcement due at 1430 AEDT. The MNI Preview can be found here. Later the US trade balance for October prints.