FX Update: The dollar picked up demand after seeing fresh lows
FX Update: The dollar picked up demand after seeing fresh lows against a number of currencies. The narrow trade-weighted USD index was near net unchanged, at 97.53, heading into the New York interbank open having earlier printed a six-day low at 97.39. EUR-USD concurrently sank back under 1.1200 after earlier pegging a three-session high at 1.1218. Eurozone data today featured a sub-forecast 0.6% m/m rebound in German manufacturing orders in March, which follows the 4.0% m/m contraction that was seen in February, with the three-month comparison down 4.1% in Q1, highlighting the impact of geopolitical tensions and Brexit uncertainty. The currency mover du jour was the Australian Dollar, which rallied strongly after the RBA refrained from cutting interest rates, instead leaving the cash rate at 1.50% following its policy review today. There had been speculation for the central bank to cut by 25 bp following unexpectedly soft Q1 CPI data, though the proximity of the May-18 federal election looks to have stayed the central bank's hand. AUD-USD rallied over 0.7% in pegging a high at 0.7048, which is the loftiest level seen since last Wednesday while putting in some distance from the four-month low seen yesterday at 0.6962. The pair subsequently settled lower, back under 0.7020, as the U.S. Dollar rebounded and as market participants digested RBA Governor Lowe's statement, which was notably downbeat on the economic outlook compared to the relatively balanced prognosis made in recent statements. USD-JPY ebbed back towards 110.50 from the the upper 110.0s. The pound took a tumble, led by Cable, which dove to levels around 1.3085-90 after opening in London near 1.3130. GBP-JPY concurrently tipped to one-week lows, while EUR-GBP rose to two-session highs. A senior member of Prime Minister May's cabinet, Jeremy Hunt, today sounded less-than-enthusiastic about the ongoing talks between the government and Labour, the principal opposition, on Brexit.