AUD strongest performer overnight - Westpac

FXStreet (Guatemala) - Sean Callow at Westpac Banking Group noted that the AUD was the strongest G10 currency over the day, just ahead of EUR.

Key Quotes:

"The Aussie rally began around 0.7630 when the RBA’s statement didn’t include an overt easing bias, rising above 0.7700 late Sydney. But it had drifted back to 0.7670 in the London morning before being ignited again by the broad USD slide, bouncing to 0.7770, where it sits early Wed Sydney, having printed a 0.7790 NY high."

"Fed governor Brainard said the lack of clarity in recent data argues for “more time” to confirm improvement in the job market and a rise in inflation. She did however say that interest rate “liftoff could come before the end of the year”."

"Australian 3yr government bond yields rose a further 3bp early Sydney Wed to 1.95%, the 10yr about 10bp to 2.84%. Pricing for an RBA rate cut by year end has been trimmed to -16bp."

"Spot iron ore rose 1.9% to $63.02/tonne, Brent crude oil added 0.9% to $65.40/bbl while COMEX copper rose 0.6%, its first gain since 21 May. Gold chopped up from $1187 to $1193/oz."