AUSSIE 3-YEAR TECHS: (M5) Within Range of Highs

Lower US yields pressured the US dollar (USD index -0.1%) resulting in AUDUSD trending higher to a peak of 0.6325 but it then moderated towards 0.6300. The pair is now up 0.3% to 0.6304. The currency looked through Australia’s budget announcement, which showed only small revisions to the government’s bottom line as a share of GDP. 

• AUDUSD maintains its short-term bull theme with moves lower seen as corrective. Initial resistance is at 0.6391 with the bull trigger at 0.6409. Clearance of this would strengthen a bull cycle. First level support is 0.6258 with key support at 0.6088.
• The yen outperformed the G10 on Tuesday, with SEK, leaving AUDJPY down 0.25% to 94.49 following a low of 94.34.
• Aussie outperformed kiwi driving AUDNZD 0.2% higher at 1.0996. It breached 1.1000 a number of times but the moves were short lived. The intraday peak was 1.1004.
• AUDEUR continued to recover rising 0.4% to 0.5842, the highest since March 18. AUDGBP is up 0.1% to 0.4870 but off Tuesday’s high of 0.4882.
• Equities were stronger with the S&P up 0.2% and Euro stoxx +1.1%. Oil prices were moderately higher with Brent +0.25% to $73.18/bbl. Copper trended higher and is +2.7%. Iron ore is back above $102/t.
• Today February CPI data print and the headline is forecast to be steady at 2.5% y/y but with ongoing electricity rebates the focus remains on the trimmed mean.