AUD catches a breather as risk tone moderates
Despite the improvement in risk sentiment from Monday, it’s worth noting that significant concerns surrounding China’s coronavirus situation remain, keeping risks tilted to the downside.
Nevertheless, the improved risk tone has provided a welcomed respite for the AUD, copping its recent decline with AUDUSD holding steady throughout the session above the 0.66 handle.
Another beneficiary of the improved risk tone is NZD, which is receiving an additional boost from expectations for another aggressive rate hike from the RBNZ at its upcoming monetary policy meeting. Consensus looks for a 75 basis points rate hike from the central bank, taking the Official Cash Rate to 4.25%.
Indeed, the RBNZ will be the next high impact risk event in the next Asia Pacific session. Before then, central banks will still remain a key theme and focus, with comments from a plethora of central bank members throughout today’s European and US sessions. Today’s speakers will include RBA Governor Lowe, Fed’s Mester, Fed’s George and Fed’s Bullard.
Nevertheless, the improved risk tone has provided a welcomed respite for the AUD, copping its recent decline with AUDUSD holding steady throughout the session above the 0.66 handle.
Another beneficiary of the improved risk tone is NZD, which is receiving an additional boost from expectations for another aggressive rate hike from the RBNZ at its upcoming monetary policy meeting. Consensus looks for a 75 basis points rate hike from the central bank, taking the Official Cash Rate to 4.25%.
Indeed, the RBNZ will be the next high impact risk event in the next Asia Pacific session. Before then, central banks will still remain a key theme and focus, with comments from a plethora of central bank members throughout today’s European and US sessions. Today’s speakers will include RBA Governor Lowe, Fed’s Mester, Fed’s George and Fed’s Bullard.
