Rebound

AUD/USD soared on Wednesday, as broader USD weakness and demand for the Antipodeans conspired to push the rate higher. It last operates at $0.7454, little changed on the day. Bulls look to a move through Apr 12 high of $0.7493 towards Apr 7 high of $0.7519. Conversely, the initial bearish target is provided by the 50-DMA at $0.7355.

• The federal government is facing criticism over the security deal struck by the nearby Solomon Islands and China, with security experts warning that Beijing could establish military presence in the Solomons within just a few weeks. This may provide another headwind for PM Morrison during the campaign period, with conservative leaders typically presenting defence policy as their forte.
• Domestic calendar offers little in the way of notable risk events today, although NZ CPI data (and the RBNZ’s own sectoral factor inflation model) may provide some trans-Tasman impetus.