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Mar 06 - 06:55 AM

AUD/USD - Deflated By Yuan Weakness Pre-RBA Event Risk

By Rob Howard  —  Mar 06 - 05:20 AM
  • AUD/USD eases to 0.6732 as USD/CNH rises to 6.94, highest since March 1

  • 0.6732 = intra-day low. AUD is often used as a liquid proxy for the yuan

  • China set modest growth target of around 5% on Sunday nL1N35D02A

  • Bids expected around 0.6700 if AUD/USD extends south pre-RBA event risk

  • 0.6695 was two-month low on March 1. 0.6770 was Asian session high

  • RBA rate decision at 0330 GMT; 25 bps hike to 3.6% expected nL4N35D0VV

Source:
Refinitiv IFR Research/Market Commentary

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