Aussie Dips On Risk Aversion

Sanctions against Russia over its war against Ukraine has rattled risk assets at the start to the week, with AUD/USD last changing hands -42 pips at $0.7184. Bears look for a sell-off past Feb 24/14 lows of $0.7095/86 before taking aim at Feb 4 low of $0.7052. On the flip side, a jump above Feb 23 high of $0.7284 would clear the way to Jan 13 high of $0.7314.

• Australian company operating profits rose 2.0% Q/Q in 4Q2021, matching consensus forecast. Inventories rose 1.1% Q/Q against expectations of a flat reading. Further GDP partials are due tomorrow, ahead of the release of quarterly GDP report on Wednesday. Looking further afield, building approvals and trade balance come out Thursday.
• Elsewhere, the RBA will deliver their monetary policy decision tomorrow. AFR's John Kehoe wrote that "the war in Ukraine could slow the pace of rate hikes as stagflationary pressures emerge," while former RBA board member Warwick McKibbin pointed to the problematic timing of higher energy prices.