Aussie Gains On RBA Speak & Firmer Sentiment, Lowe Comments Due Shortly

The Aussie dollar drew support Tuesday from RBA speak suggesting that the Bank remained determined to tighten monetary conditions and believed household were relatively well positioned to withstand further rate hikes.

• Better risk backdrop provided a further tailwind for AUD/USD, with equity markets in Europe and the U.S. showing some strength. This helped keep the rate afloat, even as BBG Commodity Index slipped.
• AUD/USD last deals at $0.6902, up 5 pips on the day. Gains were capped by the 38.2% retracement of the Jun 3 - Jul 14 downswing at $0.6912 yesterday and a break above that level would open up the 50-EMA at $0.6959. Bears look for losses towards Jul 18 low of $0.6786 & Jul 14 low of $0.6682.
• RBA Gov Lowe will speak at The Australian Strategic Business Forum from around the top of the hour. Treasurer Chalmers will also appear at the Forum later in the day.
• Note that the Treasurer has released the principles that will govern the review of the RBA, which is set to be delivered by Mar ’23 (see earlier bullet for more details).