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Easing Omicron Worry & China's RRR Cut Support AUD, RBA Decision Eyed

AUD

Some reassuring early feedback surrounding the severity of the Omicron coronavirus variant coupled with China's 50bp cut to the RRR lent support to AUD/USD Monday. The pair snapped its four-day losing streak as a result.

  • The latest RBA monetary policy decision headlines the domestic docket on Tuesday. Please see our full preview for more colour on the decision.
  • AUD/USD overnight implied volatility rose to levels not seen in two and a half months yesterday. It last sits at 13.19%, off Monday's high of 16.35%.
  • Australia's ANZ Roy Morgan Weekly Consumer Confidence Index edged higher to 107.5 from 106.0, albeit accompanying commentary noted that "weekly inflation expectations rose a touch to 4.9%."
  • Looking ahead, local house price data will hit the wires today, before the RBA policy announcement. Elsewhere, RBA Gov Lowe will speak at Payments Summit on Thursday.

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