AUDUSD Trending Lower Ahead Of RBA Decision
The Aussie underperformed on Monday ahead of today’s RBA meeting as a softer tone in equity markets weighed on the currency. After spending most of the day above 65c, AUDUSD fell 0.4% to 0.6486, close to the intraday low. The USD index rose 0.2%. Economists widely expect a 25bp hike today and the market has about a 68% chance priced in.
- AUDUSD reached a high of 0.6523 early in the European session. The clearance of the 50-day EMA has opened up key resistance at 0.6522, August 30/September 1 high. Initial support is at 0.6378, 20-day EMA, and a break would be seen as bearish.
- AUDJPY was flat and is currently around 97.32. AUDNZD rose 0.2% to 1.0880 after reaching an intraday high of 1.0891. AUDEUR fell 0.3% to 0.6051 and AUDGBP -0.1% to 0.5256 after a low of 0.5236 earlier.
- Equities were mixed with the S&P up 0.2%, FTSE flat but the Euro stoxx down 0.4%. Oil prices were moderately higher with Brent up 0.4% to $85.21/bbl. Copper rose 0.8% and iron ore is around $123.50/t.
- Today’s focus is the RBA meeting (see MNI RBA Preview - November 2023). The decision is announced at 1430 AEDT and the statement can be found here.