Risk-on Tone Dominates Global Markets

AUD

The Aussie Dollar falls as global fears start to creep higher with a data cliff inbound with the government shutdown being overturned and AI bubble fears still linger. Commodities closed down, with Crude Oil down 0.6%, Gas flat, Gold down 1.3%, Silver down 2%, Iron Ore down 0.7% and Copper down 1.4%. Asian equities where soft into the close with the ASX flat and SHANGHAI COMP down 0.5%. Today at 11:30am, The Reserve Bank of Australia’s board will release the minutes from its decision earlier this month to hold the cash rate at 3.6%. Economists will watch how the board views both the labour market and inflation.

USD

The AUDUSD opens the day lower, with the pair dropping to a weekly low overnight, opening this morning at a rate of 0.6492. Wallstreet was red into the close, with the S&P 500 down 0.9% and the DOW JONES and NASDAQ both closing down 1.1%. Last night saw Empire State Manufacturing Index came in higher at 18.7 from 10.7. Market expectations Fed will cut in Dec fall to 42% from nearly 100% in Sept as hawks fear inflation in shutdown data vacuum. No news tonight, as markets hold their breath for a backlog of US government data later this week, but Trump will speak this morning regarding cost of living.
 

EUR

The AUDEUR has opened the day lower, seeing a small spike in the morning followed my a consistent drift lower, opening this morning at 5602. European equities took a hit yesterday, seeing the CAC down 0.6% and the DAX down 1.2%. It is a back-heavy week for economic data from the Eurozone, with EU Economic Forecasts coming out yesterday and nothing today.
 

GBP

The AUDGBP opened the day lower, with the pair sliding all of yesterday, opening this morning at a rate of 0.4935. British equities where soft into the close, with the FTSE closing down 0.2%. Yesterday saw the Rightmove HPI m/m drop to -1.8% from 0.3%. Today will see MPC member Mann speaking about business conditions, not expected to move markets.
 

NZD

The AUDNZD fell overnight, dropping the 1.15 handle midday yesterday, opening this morning at a rate of 1.1475. There was no further data out yesterday and nothing to be released today.