AUD: A$ Stabilises After Yesterday’s Poor Performance, ECB Decision Later

After underperforming the G10 on Wednesday, Aussie is higher against most major currencies but not the yen. AUDUSD is up 0.1% to 0.6240 after reaching 0.6244. Expectations of a February RBA rate cut are growing. The USD index is down 0.2% after the Fed left rates on hold but Chair Powell downplayed the change in language.

• AUDJPY is down 0.3% to 96.45, close to the intraday low of 96.34, after reaching a high of 96.84 early in the session. There is some attention on BoJ balance sheet contraction.
• AUDNZD is moderately higher at 1.1020. AUDEUR is up 0.1% to 0.5986 and AUDGBP +0.1% to 0.5011.
• Many equity markets in the region remain closed. The ASX is up 0.5% but the Topix is down 0.2%. The S&P e-mini is up 0.3%. Oil prices are higher with WTI +0.2% to $72.77/bbl. Copper is off its intraday high to be up only 0.1%. Iron ore is above $105/t.
• Later US Q4 GDP, jobless claims, euro area Q4 GDP, December unemployment rate, European Commission January survey and January Spanish CPI print. The ECB is forecast to cut rates 25bp.