Post by Instantia.co

AUD/USD Update:  Testing 50-Day EMA, AUD/NZD Notches Largest Daily Fall Since 2016 In early dealing this morning AUD/USD is testing the 50-Day EMA ($0.7121), the measure is intact for now however a break below opens $0.7080 and the $0.70 handle. Pushback from US President Trump on an imminent deal with Iran and fresh strikes by the US on Iranian assets has weighed on risk sentiment. ▪️A reminder that early in yesterday's session Australia's April CPI print was softer than expected, participants have wound back RBA hiking expectations with a full hike now not priced into RBA dated OIS. ▪️Across the Tasman the RBNZ leaned hawkish whilst holding the OCR steady. There are now 80bps of hikes priced by December via RBNZ dated OIS. The diverging rate paths saw AUD/NZD notch its largest daily fall since 2016, we had flagged yesterday the pair was at a 13 year high. ▪️In early trade this morning Oil is firmer, WTI is up 2% as is the Greenback. US Treasuries are pressured and Global Equities have ticked lower. Implied FX Vols are stable for now. ▪️Middle East headline flow will continue to drive near term sentiment. This evening there is a slew of data from the US including PCE and the 2nd read of Q1 GDP. #marketupdate #AUD #USD #EMA #NZD #RBA #instantia