The aussie lags amid chatter for the RBA to cut rates further this year
The Australian dollar is just about the only notable mover so far today as Westpac revises their forecast for the RBA to cut its cash rate by three times this year - they had earlier seen only two rate cuts. That spurred some selling in the aussie as AUD/USD slipped from near 0.6900 to 0.6881 and price hovers around there ahead of European trading.
Other major currencies are holding more steady with little changes on the day so far (<0.1% change against the dollar). Risk sentiment is cautiously optimistic with US equity futures up by 0.4% while yields are holding steady as we begin the session.
Looking ahead, I would still expect risk tones to dictate trading sentiment as we look to wrap up the week so look towards equities and bonds for more clues as they will tell us how markets are feeling before we get to US trading later.
If anything else, I wouldn't expect any major risk-on moves but after the beat down overnight, market participants could be looking for some short-term reprieve so just be wary of that. As such, yen pairs will remain a key focal point in the trading day ahead.
