Aussie Weakens, Federal Budget To Focus On Tackling Rising Living Costs

AUD/USD trades on a slightly softer footing as crude oil prices dropped at the start to the new week, with participants assessing the wider risk backdrop. The rate last changes hands at $0.7277, down 17 pips on the day.

• Bears look for losses past Mar 8 low of $0.7245, which would shift focus to Feb 25 low of $0.7141. On the flip side, a jump above Mar 7 high of $0.7441 would support the bullish case.
• Assistant Treasurer Sukkar told Sky News that the federal budget (due to be delivered on March 29) will focus on households facing the burden of rising living costs.
• Most of the local focus continues to fall on potential successors for outgoing RBA Deputy Governor Debelle. AFR RBA watcher Kehoe has noted that “a woman is likely to be named Reserve Bank of Australia deputy governor for the first time in the bank’s 62-year history, with assistant governor Michele Bullock among the leading options… But the government is also considering external candidates, with the focus on women from the financial markets and government organisations, multiple sources said. Chris Kent, assistant governor for financial markets, is considered capable of filling the deputy role, but there appears to be a preference for a female to rise to the bank’s No.2 position.”
• Elsewhere, focus turns to Australia's house price index & minutes from the RBA's most recent monetary policy meeting (Tuesday) as well as monthly labour market report (Thursday).