Monday Sees AUD Rebound, Focus Turns To RBA

Western sanctions against Russia resulted in a lower re-open for AUD/USD Monday, but the rate more than unwound its initial losses later in the day amid a decent showing from commodity markets. A retreat in U.S. Tsy yields helped sap strength from the greenback, adding pressure to the pair.

• AUD/USD trades at $0.7266, little changed on the day, as participants await monetary policy decision from the RBA. Bulls look to a move through Feb 23 high of $0.7284 before taking aim at Jan 13 high of $0.7314. On the flip side, losses past Feb 24/14 lows of $0.7095/86 would shift focus to Feb 4 low of $0.7052.
• The RBA is set to leave its monetary policy settings unchanged when it issues its latest decision later today. We believe that the Bank will tip its hat to the risks posed by the Russia-Ukraine conflict, but are of the opinion that it is too early to make any firm conclusions re: the economic significance of the matter (see our full preview for more colour).
• Elsewhere, BoP current account balance, net exports of GDP & housing finance data will hit the wires today, with GDP coming up Wednesday. Building approvals and trade balance will conclude this week's data releases on Thursday.