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RBA Continuity Does Little To Prop The Currency

FOREX
  • The RBA kept policy unchanged - as expected - and made very little change to the policy statement. The Board retained its tightening bias, keeping options open for the November 7 decision.
  • The decision did little to restore stability in the currency however, with AUD/USD edging through the late September lows to print the lowest levels since November last year. The pair through the bear trigger next opens the 0.63 handle support ahead of 0.6272. AUD remains the poorest performer in G10 headed into the NY crossover.
  • NZD has been dragged lower alongside AUD, while the EUR is the session's best performer. Equity markets across Europe appear to have bottomed, which has lent some support to EUR/USD, helping the pair off overnight lows of 1.0460. Nonetheless, there are scant signs of a stronger reversal, with spot unable to retake the 1.05 handle at pixel time.
  • The USD Index sits just below a fresh trend higher printed overnight at 107.21. This extends the medium-term uptrend posted off the July lows, with 107.993, the 21 Nov'22 high, the next upside level of note.
  • Focus turns to JOLTS job data as markets look to parse all labour market indicators ahead of Friday's payrolls report. Markets expected the US to have added 170k jobs over the month, with ample focus on any negative revisions given the trend so far in 2023.

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