AUDUSD: Look for better levels

This week’s economic calendar started with a 2.7% CPI inflation rate in China, that has helped the Asian mood up to a point.

In Australia, despite further lockdowns and a rising infection rate, 10-year yields a few basis points higher. We’ve cut out AUD/USD long and are hoping to get back in at better levels at the end of the month, but the out-performance against NZD is striking. The RBNZ is unhappy about the strength of NZD and the market is wondering what message might come from the RBNZ meting on Wednesday. That is helping AUD/NZD.