Supported By Better Risk Appetite, RBA Mins Out Today

The AUDUSD starts the day a little above 0.6730. It rebounded from the 0.6672 low during the US session. The pair didn't make fresh lows relative to last Friday when we touched 0.6670. General USD strength seen earlier waned as risk appetite recovered somewhat. US equities and WTI oil prices rose around 0.6%. The VIX ended lower too at 25.75%.

• With the UK and Japan closed, liquidity was lower, but the AUD was the best G10 performer against the USD (+0.16%) in contrast to the NZD (-0.5%), which was the worst. As a result, the AUDNZD cross rose to 1.129 up about 60pips overnight. AUD also gained against the JPY reaching 96.33 and has started the day around this level. AUDEUR is also stronger at 0.671. The A$ likely received some support as a number of local banks have upped their forecasts for the next RBA meeting to 50bps (from 25bps).
• The AUD has been range trading between its 20-day EMA of 0.6814 and it initial support 0.667.
• Not only were oil prices higher, but copper rose slightly and iron ore as well (recovering from $97 earlier in the day to $99).
• The RBA publishes its September meeting minutes today, but given Governor Lowe’s two talks since the meeting, there is not expected to be a lot of new information. Deputy Governor Bullock speaks tomorrow. The market continues to wait for the Fed’s meeting on Wednesday.