UK referendum was the focus on Monday with GBP driving intraday risk sentiment. GBPUSD rallied 2.2% to 1.4718 high in biggest one day gain for seven years. The latest polls shown Bremain gaining momentum, with MP Jo Cox murder acted as catalyst with further warnings from Bank of English and fear of uncertainty shifting sentiment. The polls remain a close call, latest data this morning by YouGov/Times indicating 2% lead for Vote to Leave; 42% remains, 44% leave. The market can be fickle, price action likely to remain choppy until the vote is resolved.
The Australian Dollar benefited from lift in risk sentiment as it holds above 0.7450. The RBA monetary policy meeting minutes is due to be released today. The RBA minutes likely to be upbeat with recent economic data while maintaining open to easing due to low inflation. Jawboning of AUD is possible. Yellen is also due to testify on semiannual monetary policy report tonight, shading light on next US Fed move. Central banks actions will draw more attention next week, as the market is wholly focused on UK referendum.
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