[MARKET ANALYSIS] DXY regains some composure as oil prices partially rebound, while AUD remains firmer ahead of a widely-expected back-to-back RBA rate hike

DXY: +0.1%

• Regained some composure after weakening yesterday with recent price action largely at the whim of oil prices, while the focus remains on geopolitics, although there was nothing too escalatory, and President Trump said that Iran wants to make a deal and is talking to their people. Furthermore, it was reported that Iran's Foreign Minister Araghchi and US Envoy Witkoff were in contact over text messages in recent days, although Iran has since refuted the reports of recent contacts.

EUR/USD: -0.1%

• Retraced some of the prior day's advances and returned to beneath the 1.1500 handle as the dollar regained some composure, while there was little reaction seen to reports that the EU is close to finalising a trade deal with Australia after years of negotiations.

GBP/USD: -0.1%

• Partially faded its gains and retested the 1.3300 to the downside, where it found some slight support, but with price action contained amid the lack of fresh catalysts for the UK.

USD/JPY: +0.2%

• Rebounded overnight following a brief dip to sub-159.00 territory with upside facilitated as the dollar nurses losses and oil partially recovers.

Antipodeans: AUD/USD +0.2% / NZD/USD -0.2%

• Price action is mixed after recent outperformance, although AUD/USD remains afloat amid wide expectations for the RBA to deliver a second consecutive 25bps rate hike to lift the cash rate to 4.10% at its meeting today.