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AUDUSD Rises On Better Risk Sentiment, Focus On RBNZ Meeting


G10 currencies all did better against the USD overnight, as DXY fell 0.6% versus Monday’s close. The AUD was a mid-range performer compared with other currencies. AUDUSD is now close to its overnight high of 0.6652 at around 0.6646.

  • RBA Governor Lowe’s speech reiterated that the Board will continue to raise rates over “the period ahead”. The focus today will be on the RBNZ, which is expected to hike rates 75bp. AUDNZD is slightly lower ahead of the meeting trading around 1.080. The other Aussie crosses have all started the day around yesterday’s NY close.
  • AUDUSD bullish conditions remain but the next support is 0.6558, the 50-day EMA and represents a key intraday level. A decisive break here would point to a possible deeper retracement. A resumption of the uptrend would occur with a break of 0.6797, the November 15 high.
  • Equity markets were higher across the board with the S&P 500 up 1.3%, the Eurostoxx +0.5% and the FTSE +1%, as some risk appetite returned. Oil prices were also higher with WTI reaching a high of $82.36/bbl before returning towards $81. Copper prices were up 1.3%, as the USD weakened and on news of support for the Chinese property sector. Iron ore is lower at $93 on rising supply.
  • Today the S&P Global preliminary Australian PMIs for November print. Tonight they will also be released for Europe and the US. US data has been brought forward to today due to the Thanksgiving Holiday. The FOMC minutes are also published tonight.

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