AUD Furthers Recent Advancements

AUD

The Aussie Dollar continues to strengthen, reaching muti-month highs against some majors after a recent uptick in performance among commodities. The ASX ended yesterday 0.5% higher as tech rebounded and energy stocks outperformed. Asian equities were mixed, with the Hang Seng falling -1.2% while the Nikkei gained 0.8%. Today, Chinese banks are closed in observance of Tomb Sweeping Day, while there’s only one pieces of Aussie data set for release, being our Goods Trade Balance at 11:30am.
 

USD

AUDUSD peaked at 0.6616 overnight as the AUD continues to benefit from the recent uplift in commodity prices. The pair opens at 0.6586, while a volatile session on Wall Street saw the major indices erase strong early-session gains to each trade over 1% lower into the close. Little notable commentary from the Fed’s Barkin and Mester overnight, with the central bankers stating it’s smart to ‘take our time’ on interest rate cuts. Tonight will bring US employment figures which are likely to impact expectations for monetary policy and the economic outlook. Focus will be placed on whether the pace and breadth of payrolls gains in Feb persisted. The Unemployment Rate, which rose 0.2% to 3.9% in Feb, will also be focused on. Expectations are that it will remain unchanged.
 

EUR

AUDEUR touched 2-month highs of 0.6092 overnight, having fallen off a tad at around 4:30am to this morning’s open at 0.6077. The DAX gained +0.2% and the CAC was flat. Yesterday’s ECB Monetary Policy Meeting Accounts showed the central bank saw a strengthened case for rate cuts at the most recent meeting. The ECB has identified June as the month to start lowering interest rates as inflation returns to its 2% target following the worst spike in Eurozone history. Markets are now looking for clues to how quickly monetary loosening will unfold, and where it will end. Tonight will bring Retail Sales for the Eurozone, expected to fall -0.3%. 
 

GBP

AUDGBP reached 2.5-month highs of 0.5225 overnight ahead of this morning’s open at 0.5206. The FTSE ended yesterday’s session up +0.5%. Tonight, we’ll see the UK Construction PMI, giving insight into employment, production and inventory ratings among Purchasing Managers. The figure is expected at 49.8 which reflects slight contraction, although continuing to approach the 50+ expansion level.
 

NZD

AUDNZD showed further strength during the overnight session, climbing to 5-month highs of 1.0955 before retreating only a little to this morning’s open at 1.0930. The next major release from the Kiwis will be the RBNZ interest rate decision, next Wednesday April 10. The central bank is largely expected to hold the Official Cash Rate at 5.5% for the sixth consecutive meeting, with economists expecting no cuts before Q3 as the economy grapples with still-elevated inflation and recessionary fears.