And so the RBA joins the BOC in moving to the sidelines as the central bank tightening cycle starts to reach its decrescendo of sorts now. The aussie has slipped a little in the aftermath but the slight drop just owes to a bit of adjustment to market pricing, with roughly just 15% of traders in the OIS market anticipating a 25 bps rate hike today.
In the bigger picture, the dollar remains the more intriguing major currency to watch at the moment. EUR/USD is back up close to 1.0900 with short-term resistance around 1.0920-30 in play, as well as key resistance around 1.1000. GBP/USD is also tracking back up above 1.2400 with key resistance around its December and January highs at 1.2443-46 the one to watch.
Those will be important levels in gauging dollar sentiment in the days ahead and if they continue to hold, that might set up for more choppy trading among major currencies for now.
Elsewhere, equities are continuing to stay buoyed with the S&P 500 managing to squeeze out some gains yesterday despite poorer tech sentiment. In Europe, the DAX is near the highs for the year while the CAC 40 is also near record highs as the upside momentum so far this year remains largely intact.
For now, equities are more tentative today but it is still early. And with little on the agenda in Europe to shake things up, we could just see some light continuation or perhaps just some minor pushing and pulling in the session ahead.
0600 GMT - Germany February trade balance data
0900 GMT - Eurozone February PPI figures
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
