US Equity Stabilisation Supports AUDUSD

AUDUSD finished up 1.3% on Monday to 0.6668. It reached a high of 0.6717 before moving below 67c again. Aussie outperformed the G10, except for NZD, after underperforming on Friday as US equity markets stabilised following the collapse of SVB. The USD fell 0.7% on lower US yields.

• Despite the upward move in AUDUSD on Monday, trend conditions remain bearish. The break through 0.6629, the December 20 low, last week confirmed a bear flag formation. Initial support is currently at 0.6547 and resistance at 0.6717.
• AUDNZD is down 0.1% to 1.0720. AUDJPY is flat at 88.82. While AUDEUR is up 0.4% to 0.6214 and AUDGBP stable around 0.5472.
• Equity markets were weaker following the collapse of two US banks. Eurostoxx slumped 3.1% but the S&P 500 stabilised to be down 0.15%. The VIX was up to 26.5%. Gold prices have benefited from recent events and rose another 2.4% on Monday to $1913.70/oz, the highest since early February. WTI oil prices fell 2.6% to $74.80/bbl. Copper prices rose 0.25% and iron ore is up to just over $132/t.
• Today a number of surveys are published. Westpac consumer confidence for March follows the CBA’s February household spending intentions. Then there is the February NAB business survey, which RBA Governor Lowe mentioned as something the Board will be monitoring ahead of the April meeting.