USD Sags as Government Shutdown Fuels Uncertainty

AUD

The Australian Dollar opened this morning flat against the USD and EUR, lower against other majors. Asian equities ended mixed, Nikkei lower -0.9%, while Hang Seng and Shenzhen attracted bids +0.9% and +0.5%. The ASX 200 closed a tad lower. We saw the Aussie climb against most majors in the late evening only to retrace by the early morning today to settle back at yesterday morning's support level, having shed all gains. Overnight movement was seen dye to poor US jobs data and caution raised over uncertainty after the US government's shutdown yesterday. Today's data sees both Goods Trade Balance and the RBA Financial Stability Review at 11:30am. 
 

USD

AUD/USD opened flat at 0.6613 with both the Aussie and US Dollars weakening overnight. Wall St. edged higher for a fourth consecutive session with the Nasdaq +0.4%, S&P500 +0.3% and the Dow +0.1%. US data saw ADP Non-Farm Employment Change print -32k jobs lower against forecasts of +52k, ADP painting an ugly picture of the US jobs market pre-shutdown, welcoming hopes for more Fed rate cuts. The US dollar also weakened overnight as the US government was officially bought to a temporary standstill yesterday. This came after the Senate rejected a short-term spending measure that would have kept government operations afloat through to November 21st. This was especially surprising being the first US government shutdown in seven years, with the last occurring in 2018. Tonight, US Unemployment Claims data is set as tentative given the shutdown.
 

EUR

AUD/EUR opens flat at 0.5635. European equities were mostly weaker in morning trade, CAC -0.3%, DAX -0.3%. Eurozone Core CPI Flash Estimate y/y printed last night meeting expectations of +2.3%, foregoing any and all surprises. AUD/EUR had slid yesterday afternoon but won back lost ground overnight to settle in the same position as yesterday's open. Tonight, the Eurozone Unemployment Rate.
 

GBP

AUD/GBP opened lower at 0.4906 against yesterday's 0.4919. The FTSE up +0.5%. MPC Member Mann spoke last night, calling for a sustained interest rate hold, citing a recent spike in consumer inflation expectations as evidence price rises were embedding in the economy. Yesterday's data saw Nationwide HPI m/m print +0.5% up against forecasts of 0.2% showing selling prices of homes with mortgages higher suggesting stronger UK house prices. Final Manufacturing PMI met expectations at 46.2 meeting forecasts but still showing contraction in the UK's Manufacturing prices index. No UK data set for release tonight.
 

NZD

AUD/NZD opened weaker at 1.1364 against yesterday's 1.1408. Overnight saw Aussie dollar weakens against the kiwi as we retrace lower against recent 3-year highs.NZ residential Building Consents were up 6.9% in August, higher from a year ago and being the second monthly increase in a row showing stronger results. No Kiwi data today.