RBA Speak Generates Antipodean Outperformance

Antipodean currencies found poise as an uptick in U.S. e-mini contracts sparked hopes for rebound after yesterday's Wall Street rout. The Aussie dollar outperformed as participants parsed the latest round of comments from the local central bank.

• The minutes from the RBA's most recent monetary policy meeting revealed that the Bank still saw the cash rate "well below" the lower estimates of neutral and recognised the need to keep tightening policy.
• Later in the session, RBA Dept Gov Bullock expressed confidence that most households are well positioned to weather tighter monetary conditions.
• The Aussie dollar crept higher since the release of RBA minutes. It extended gains to session highs on Bullock remarks, which inspired a notable upswing in 3-Year ACGB yield.
• The kiwi dollar firmed in tandem with its Antipodean cousin. AUD/NZD crept to a one-week high.
• The European FX bloc showed some weakness amid lingering worry surrounding gas supplies from Russia.
• On tap today are the final reading of Eurozone's CPI, UK labour market report, U.S. building permits as well as comments from Fed's Brainard, ECB's Makhlouf & BoE's Bailey.