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Soaring Commodity Prices Support Aussie

AUD

Weekend talk of potential restrictions on imports of Russian oil (the White House flagged ongoing consultations with European allies) has lent support to AUD/USD in early Sydney trade, despite signs that the U.S. is launching diplomatic efforts to court alternative suppliers.

  • AUD/USD topped out at $0.7395, the highest level since Nov 9, and last trades +22 pips at $0.7392, with bulls setting their sights on Nov 9 high of $0.7432. Bears look for a dip through Mar 1 low of $0.7239 towards Feb 24 low of $0.7095.
  • PM Morrison warned that the war in Ukraine will "inevitably stretch" to the Indo-Pacific as he prepared for the announcement of a A$10bn project to build a new base for a future fleet of nuclear submarines. Morrison will make the announcement during his foreign policy speech to the Lowy Institute today (12:30 AEDT).
  • On the data front, focus turns to ANZ job ads (Monday), NAB Business Confidence (Tuesday), Westpac Consumer Confidence (Wednesday) & consumer inflation expectations (Thursday).
  • RBA speaker slate includes remarks Gov Lowe (Wednesday & Friday) as well as Dep Gov Debelle (Wednesday).

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