Markets Quiet Ahead of Data Dump
AUD
The Australian Dollar trades mostly sideways against the majors opening slightly higher this morning, after what was an uneventful day with no news released. Asian equities opened the week mixed in trade with the Hang Seng finishing +2%, Nikkei -2.4% and Shenzhen -0.1%. The ASX 200 climbed by +1.3% as industrials and technology sectors led the pack with gains +2.7% and +2.4%. Commodities also closed mostly in the green with Gold +0.6%, Silver +0.7%, Iron Ore +0.4%, while Copper was down -0.4%. Another quiet day on the news front locally with nothing set for release, all eyes are focused on our CPI y/y results tomorrow at 11:30am, with forecasts pointing to a slight jump from 3.5% to 3.6%.
USD
AUDUSD opens slightly higher this morning at 0.6465 after U.S rate cut expectations were spurred by Wall St overnight and saw the Nasdaq trading +2.7%, the S&P 500 +1.6%, and the Dow Jones +.6%. Fed’s Waller also said that the Fed were more concerned with the labour market and that the inflationary impact of tariffs was a one-off and not that big, resulting in them advocating for a rate cut. U.S. Retail Sales for September will be published later tonight. Readings for the three months prior to September suggested solid consumer spending, with total sales for the June-August period seeing a 4.5% increase relative to the same period a year ago. U.S. Producer Price Index for September will also be posted. As an early indicator of inflation, the components that contribute (portfolio management & investment advice & air travel, etc.) to the Core PCE will be closely watched. The index saw a decline of 0.1% in August, driven by a decline in services, while the index for goods increased.
EUR
AUDEUR opens mostly flat this morning at 0.5608 after German ifo Business Climate came through slightly under forecast at 88.1 from 88.6. ECB president Nagel also spoke on monetary policy stating with “December projections, we'll see more clearly if monetary policy stance remains appropriate”. Eurozone equities closed mixed with the DAX +0.6%, while the CAC closed -0.3%. It will be a quiet week for Eurozone data with no major news set for release, later this evening we will get the German Final GDP q/q which is expected to remain flat at 0%, there will also be the ECB Financial Stability Review set for release tomorrow night.
GBP
AUDGBP opens mostly flat at 0.4932 after an uneventful day for data releases which saw the FTSE close in the red -0.1%. It will be another quiet day or data releases out of the UK with only CBI Realized Sales set for release later this evening, with forecasts pointing to a further drop in sales volume from -27 to -29. All eyes will be focused on tomorrow night’s Autumn Forecast Statement as the budget will be a significant test of the government’s fiscal credibility after a wobbly period following the will she-won’t she debate regarding income tax rises. Markets are looking for a credible plan which will assure them that the fiscal rules will be met.
NZD
AUDNZD opens flat this morning at 1.1515 trading sideways overnight with no news to mention. It will be another quiet day for our Kiwi neighbours with nothing set for release, Tomorrow however will be the main data event for the week with their Official Cash Rate decision with forecasts pointing to a 25-basis point cut from 2.50% to 2.25%.