AUD Regains Composure Amidst Global Uncertainty

AUD

The Aussie Dollar opens higher against the majors, buoyed by commentary from the RBA stating that monetary policy may no longer be restrictive. Asian equities continued to slide and closed poorly, with the ASX -1.9%, Shanghai Comp -0.8% and Nikkei -3.2%. Yesterday had the Monetary Policy Meeting Minutes which boosted the Aussie Dollar, and today will have the Wage Price Index q/q expected to release at 0.8%. No more major data from Australia and China to be released this week, as a majority of the volatility will be a result of changes in risk sentiment.
 

USD

The AUDUSD opens at 0.6506, rebounding from yesterday’s lows of 0.6465 before settling at current levels. Wall Street was down again, with Dow Jones -0.7%, S&P500 -0.3% and Nasdaq -0.6%.  Last night US Unemployment Claims unexpectedly released for the week ending October 18th, coming in at 232k. Which is the first jobs related data to come out since the government shutdown. President Trump spoke yesterday regarding inflation with minimal market reactions, and tonight will have the FOMC Meeting Minutes from their previous meeting. This will give extra insight to their split decision to cut interest rates to 4.00%. The major event of the week will be the backlog of American employment figures that was delayed due to the recent government shutdown. This data is crucial as markets are currently flocking to safer assets, and this could continue to stoke the risk-on sentiment.

EUR

The AUDEUR opens at 0.5617, recovering from yesterday’s one month lows of 0.5575 before returning to current levels. No economic data released yesterday out of the Eurozone, but European equities mirrored global trends and closed down with the DAX -1.7% and CAC -1.9%. Tonight will have some final inflation figures from last month, however the main data piece will be the Flash Manufacturing and Services PMIs released out of France, Germany and the Eurozone.
 

GBP

The AUDGBP opens at 0.4947, having touched 3-week lows of 0.4917. No data out of England yesterday, but the FTSE was down -1.3% as global equities fall. Today will have CPI y/y at 6pm, with current expectations of it releasing at 3.5%, a drop from last year from 3.8%.
 

NZD

The AUDNZD opens at 1.1497, having reached 2-week lows of 1.1458 yesterday. No data released yesterday, but the PPI Input and Output q/q released this morning at 0.2% and 0.6% respectively.