Rising Risk Appetite Floats AUD Higher
AUD
The Aussie Dollar sees mixed gains across the board as risk sentiment is seemingly lifting globally. Asian equities were soft into the close with the ASX closing flat and the SHANGHAI COMP closing up 0.3%. Commodities closed mostly higher with Oil down 0.2%, Gas down 1.5%, Gold up 1.8%, Silver up 5.8%, Iron Ore up 0.3% and copper up 1.5%. On Friday we saw local Private Sector Credit m/m rise to 0.7% from 0.6%. Over the weekend China’s purchasing manager surveys for manufacturing and services showed mixed signals in November, with Manufacturing PMI reading 49.2 as expected from 49 and the Non-Manufacturing PMI fell from 50.1 to 49.5. These results have policymakers in China focused on how consumers are feeling, and spending. Later today MI Inflation Gauge m/m is set to be released, previously at 0.3%, and ANZ Job Advertisements m/m is also being released, previously at 0.3%.
USD
The AUDUSD opens the day higher, seeing a rally in the Friday night session, opening this morning at a rate of 0.6550. Wallstreet saw solid gains into the close, with the DOW JONES up 0.6%, S&P 500 up 0.5% and the NASDAQ is up 0.7%. It was a quiet end to the week with their Thanksgiving holiday leaving economic data releases dry. OPEC meetings did start on Sunday, giving steady news so far, stating that they are not looking to effect output levels for oil in Q1 2026. The ISM Manufacturing Index for November will be released later tonight and is projected to improve to 49.2 while remaining below the expansion threshold of 50. The internal components could be telling as well with the new orders to inventories ratio recently suggesting improvement may lie ahead in 2026.
EUR
The AUDEUR crept higher since Friday to a fortnightly high, briefly piercing the 0.5650 barrier over the weekend, opening this morning at a rate of 0.5647. European equities saw mild gains into the close, with the DAX and CAC closing up 0.3%. Friday saw the release of the German Prelim CPI m/m, coming in lower as expected at -0.2%, previously at 0.3%. Looking forward German Final Manufacturing PMI is set to be released tonight, expected to remain at 48.4, overall it is a quiet week ahead. Notably ECB President Lagarde is set to speak Wednesday night, which may gave markets direction into the close of the year.
GBP
The AUDGBP opens the day flat, with the pair keeping stable over the weekend, opening this morning at a rate of 0.4944. British equities were soft into the close, with the FTSE closing up 0.3%. Friday saw BoE's Greene speak, mentioning most policy rules suggest keeping rates steady and It's encouraging services inflation is coming down. Final Manufacturing PMI is coming out tonight, expected to remain at 50.2.
NZD
The AUDNZD opens the morning flat, with the pair sliding sideways over Friday, opening this morning at a rate of 1.1420. Earlier this morning saw Building Consents m/m drop to -0.9% from 7.3%.