Risk Appetite Wanes, AUD Blips Higher Post-RBA

The U.S. dollar led safe haven currencies higher in a tight Asia-Pac session, as most regional bourses saw their benchmark indices lose ground, but resultant FX price swings were somewhat limited. The DXY crept above the prior intraday high and approached its 100-DMA but stopped short of testing that moving average.

• The latest monetary policy decision from the RBA provided the main point of note in the timezone, with AUD slipping in the lead-up to the announcement amid chatter re: the unwinding of longs by short-term funds. The Aussie regained poise as the RBA left its policy settings on hold, as some had expected somewhat more forceful rhetoric surrounding the Reserve Bank's 3-year yield targeting scheme. After the decision, AUD/USD implied volatility eased broadly across a range of tenors.
• The commodity-tied space was weighed on by softer crude oil prices, with NOK lagging all of its G10 peers. NZD ignored comments from RBNZ Asst Gov Hawkesby circulated by BBG early doors, as the official largely reiterated the Reserve Bank's familiar stance.
• USD/JPY extended its winning streak and had a brief look above Monday's best levels, hitting best levels since Aug 28.
• The PBOC fixed its USD/CNY mid-point at 6.4625, 10 pips above sell-side estimates. USD/CNH ground higher, erasing yesterday's losses in the process, after failing to consolidate below its 50-DMA.
• Today's docket features Canadian GDP, German unemployment & retail sales, flash EZ CPI as well as speeches from Fed's Brainard & Daly, ECB's Panetta & Norges Bank's Olsen.