Clear Break Of AUDUSD Below 65c, RBA Decision & Press Conference Later

AUDUSD has made a clear break below 65c as the greenback strengthened further on Fed repricing following strong payrolls and Chairman Powell’s recent comments (USD index +0.4%). Equity weakness also weighed on the Aussie but it finished Monday as a mid-range performer among the G10. AUDUSD is down 0.5% to 0.6482 after a low of 0.6469.

• The clear break of 0.6500 has reinforced the bearish theme in AUDUSD and opened 0.6453, November 17 low. Moving average studies are crossing into a bear-mode set-up, strengthening the downtrend. Key short-term resistance is at 0.6625.
• AUDJPY is down 0.2% to 93.40 after a low of 96.21. AUDNZD is approaching 1.07 and is 0.3% lower at 1.0705, close to the intraday low. AUDEUR is flat at 0.6036 while AUDGBP rose 0.3% to 0.5171.
• Equity markets were generally weaker with the S&P down 0.3% and Dax -0.1% but Euro stoxx flat. Oil prices were higher with Brent up 0.9% to $78.05/bbl. Copper is down 1.3% and iron ore is lower at around $125/t.
• Today the RBA is unanimously expected to leave rates at 4.35%. While the tightening bias is likely to remain, the statement will be watched closely. Detailed forecasts will also be released and the timing of inflation’s return to target, especially the mid-point, will be the focus. See MNI RBA Preview here.