The Australian dollar is out-performing this morning after the RBA opted to keep rates on hold overnight rather than cut to 1.25 as was widely expected. This, coupled with better than expected retail sales has seen the AUD/USD launch higher and erase all the damage from Monday’s opening gap lower to trade above 0.7040. The AUD/JPY is also performing well, recovering all of yesterday’s opening gap to trade just below 78.00.
The dollar index is sinking this morning, largely driven by the Aussie counterweight.
The GBP/USD has had mixed blessings recently with a strong performance Friday, followed by a reversal yesterday and small gains this morning. The EUR/USD is bidding higher, above 1.1200 after recovering the opening gap yesterday. The EUR/GBP is back on its downwards path after yesterday’s counter trend rally, while the EUR/CHF remains unchanged but in reach of the highs.
The USD/CAD is lower this morning, continuing yesterday’s momentum. Even the USD/CHF is slipping, but the pair remain rangebound and within reach of the highs.
Yen pairs are mixed, with the USD/JPY on the back foot once again and erasing all of yesterday’s attempts to recover the opening gap sell-off. The EUR/JPY is sitting just above support at 124.00, while the GBP/JPY is holding 145.00 for now.
MPC Cunliffe speaks at 08.00.
EU Economic Forecasts are at 09.00.
Canadian Ivey PMI is at 14.00.
FOMC member Quarles speaks at 15.35.
MPC member Haldane speaks at 16.30.
The EUR/JPY has recovered after being hit hard early yesterday. That said, pressure remains on the pair, with 124.00 a key support level.