Easing Geopolitical Angst Provides Reprieve

The reduction in geopolitical tension surrounding the Russia-Ukraine standoff lent support to AUD/USD Tuesday by stimulating renewed appetite for riskier assets. Russia said it was ordering some troops to return to barracks (although the initial Western reception of the announcement was rather cautious) and emphasised the need for continued talks, as a flurry of diplomatic activity continued.

• Worth noting that Australia's Westpac Leading Index rose 0.13% M/Min January, which was "the first positive, above trend, read on the Index growth rate since the ‘Delta’ lockdowns impacted in August last year."
• The main focus this week falls on monthly labour market report, due for release on Thursday. In the meantime, EBA's Debelle & Bullock will testify to lawmakers later today.
• AUD/USD last sits at $0.7150, barely changed on the day. The initial layer of resistance is provided by $0.7249, the high print of Feb 10. Above there opens Jan 20 high of $0.7277. Conversely, a fall through Feb 14 low of $0.7086 would expose Feb 4 low of $0.7052.