AUDUSD Starts Week Softer, Watch Upcoming RBNZ Meeting

AUDUSD started the day lower hitting a low of 0.6653 but is now trading around 0.6665. AUDUSD softened when the USD strengthened after Boston Fed President Collins said that 75bp is not off the table for the December meeting. But it was one of the better G10 performers falling less than most of Europe.

• AUDUSD hasn’t broken the initial support of 0.6634 and bullish conditions remain in place. This latest pullback is corrective.
• AUDJPY fell Friday night to 93.23 and is now slightly higher around 93.52. AUDNZD trended down over the last part of the week in anticipation of the RBNZ meeting and is about 1.0830 this morning. AUDGBP is also down but off the lows and is around 0.5601.
• Equities were stronger across the board Friday night with the S&P 500 up 0.5% and Eurostoxx +1.2%. Base metals were mixed but the LME index rose slightly (0.4%) but was down 3.3% on the week as demand concerns dominated. WTI oil prices ended the week lower with a 1.9% drop on Friday to finish at just above $80/bbl. Iron ore was stronger on Friday at just under $99/tonne but is down today at around $97 after fears have increased of further Covid restrictions in China.
• It is a quiet week in Australia with the main events being RBA Governor Lowe’s speech Tuesday evening followed by the preliminary S&P Global PMIs for November on Wednesday. The RBNZ meets on Wednesday and is expected to hike 75bp hike.