RBA Shift To Neutral Drives A$ Underperformance

Aussie softened following the RBA decision to move to a neutral bias and as a result underperformed most of the G10. AUDUSD fell towards 65c through the rest of the APAC and then the European sessions reaching a low of 0.6504. The pair picked up a bit as the greenback gave up some of its gains (USD index +0.2%) and is down 0.4% to 0.6533.

• AUDUSD fell to its lowest since early March yesterday and has sustained the break below the 50-day EMA at 0.6571 which signals scope for the pair to move lower and opened support at 0.6478, March 5 low. The bear trigger is at 0.6443, February 13 low. Clearance of 0.6668 is needed to resume the bull cycle.
• AUDJPY rose 0.7% to 98.51, close to the intraday high. AUDNZD fell to a low of 1.0762 following the RBA decision but climbed back to be up 0.1% at 1.0792. AUDEUR is down 0.4% to 0.6011 after breaking through 60c earlier. AUDGBP is 0.4% lower at 0.5134.
• Equities rallied with the Euro stoxx up 0.5% and S&P +0.6%. Oil prices continued to climb with WTI up 0.4% to $82.52/bbl. Copper is down 1.5% but iron ore is up to around $106/t.
• There are no data or events in Australia today.