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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
AUD/USD is continuing to track lower post the RBA, although is finding some support near the 0.6700 level. We are 0.30% lower for the session, last near 0.6700/10 levels and are underperforming most of the G10 currencies, particularly the NZD. The AUD/NZD cross is back to the low 1.0810/15 region, versus earlier session highs of 1.0870.
- The main knock for the A$ came in terms of the RBA statement (the +25bps was delivered as expected). The removal of the need to hike rates in the months ahead, which was in the previous statement, opens the door to a pause in the tightening cycle. The central bank stated it still expects to tighten further. The other dovish point was the reference to monthly CPI, which the bank stated suggests inflation has peaked.
- For AUD/USD recent lows come in around the 0.6700 level, so that will be watched. Beyond that is 0.6664, the 50% retracement of the Oct-Feb bull cycle.
- AU-US yield spreads are tracking lower, with the 2yr differential back to -150bps, around fresh cycle lows, see the chart below.
Fig 1: AUD/USD & AU-US 2yr Spread
Source: MNI - Market News/Bloomberg
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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