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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUD
- The post-RBA pullback in the AUD persists through to NY hours, with AUD holding its position as the poorest performer across G10 so far Tuesday. Despite GBP/USD's pullback off the overnight high, GBP/AUD remains particularly firm and is approaching horizontal resistance at 1.8030 - the Feb28 and YTD high.
- Any break north of this level will open levels last seen in late December, with 1.8276 the longer-term upside target.
- Short-end yield spreads remain a key underlying driver, with the 2yr UK-AU yield spread pressing higher in recent sessions and helping aide the strength in the cross since the RBA overnight.
- On a technical basis, momentum in the cross is yet to reach overbought levels, with the 14-day RSI still below the 70 handle. The last time the cross was technically overbought was October last year, which presaged a near 3% pullback in the pair.
Figure 1: GBP/AUD vs. UK-AU 2y Yield Spread
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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