Recoups Losses Against EU Currencies, Trade Data On Tap Today

The AUDUSD outperformed the rest of the G10, except the NZD, as the USD strengthened on higher yields as the services ISM proved more resilient than expected. AUD hit a low of 0.6417 before returning to just above 0.65 and is now trading just below there. It has been oscillating around this point for the last couple of days.

• AUDNZD gained some ground overnight after the initial reaction to the hawkish RBNZ, and is currently trading around 1.1312. This is still below where it was pre the RBNZ announcement. AUD gained versus the EUR and GBP overnight back to levels seen on Tuesday.
• The DXY rose 1% from its low early in the London session. The improved confidence in the US economy also meant that equity markets were down moderately and the VIX lower to 28.5%. The Eurostoxx fell 1.05% as PMI data disappointed.
• Oil prices rose further with WTI +1.8% and Brent 2.1% after OPEC+ agreed to cut production by 2mbd, the upper end of expectations, on concerns of slowing demand. Russia pushed for more. Copper ended the day up 1.5%. Iron ore is down slightly to $95.
• This morning the Australian trade balance for August prints and the surplus is expected to widen to A$10bn. Later there is a swathe of Fed speakers including Governors Cook and Waller.