Australian dollar

For the second day in a row, the Japanese yen is the weakest major currency as today’s heavy risk-on bent leads to selling in the safe haven currency. Meanwhile, the aussie has caught a big bid despite the RBA citing “increased risks” to the household sector.

Overall the statement remains fairly-balanced, although it continues to appear that RBA’s confidence in the labour market is fending off a dovish stance. We still see potantial for AUD/NZD's bullish wedge to play out.

The US dollar perked up mid-Asia, weighing notably on commodity currencies AUD and NZD ahead of the meeting. With a likely swing high in pace, AUD/USD could be headed for 70c.