AUD/USD is firmer on the day – BBH

AUD/USD is firmer on broad US Dollar (USD) weakness and improving Chinese economic activity, BBH FX analysts report. 

Broad USD weakness pushes AUD/USD upwards

"Australia’s Treasurer Jim Chalmers warned that Cyclone Alfred is estimated to reduce Q1 GDP by -0.25pts and lead to upward pressure on inflation. The RBA will look through this temporary negative supply shock. The RBA signaled it will pay particular attention to labor market development to guide future policy decision." 

"Australia’s labor market report is due Wednesday. In the meantime, cash rate futures continue to imply almost 75bps of easing in the next twelve months with the next 25bps cut fully priced-in for July."