All Quiet Ahead of Major PMI Data

AUD

The AUD opens mixed with minimal movement against the majors, following a quiet few days leading up to the Christmas period. Commodities followed suit, with the highest movers being Wheat -1.6%, Copper +1.1% and Oil -1.1%. Asian equities were down on the close, with the ASX -0.7%, Shanghai Comp -0.6% and Nikkei -1.3%. Yesterday had some minor economic data out of China, indicating a slightly lower than expected confidence in their economy.  No major data out of Australia until the New Year, with the majority of volatility arising from other currencies.
 

USD

The AUDUSD opens at 0.6638, trading between 0.6633 and 0.6657 yesterday with minimal news. American equities were slightly down, with Dow Jones -0.2%, S&P 500 -0.1% and Nasdaq -0.4%. Last night saw Empire State Manufacturing Index release at -3.9, missing against the expected 9.8, however this joins a mix of other American data showing an unclear picture of how the American economy is currently tracking. Tonight will have Flash Manufacturing PMI, Flash Services PMI, Retail Sales and employment figures out of America, which are likely to move the USD depending on the reaction to this data dump.
 

EUR

The AUDEUR opens at 0.5650, dropping from yesterday’s highs of 0.5690 as the rate has continued dropping since last Wednesday. European equities saw a rise, with the DAX closing +0.2% and CAC +0.7%. Minimal data out of Europe yesterday – similar to the rest of the world – however tonight will have Flash Manufacturing PMIs and Flash Services PMIs out of France, Germany and the Eurozone. Additionally, the European Central Bank will meet Thursday night to decide interest rates and are expected to hold interest rates at 2.15%.
 

GBP

The AUDGBP opens at 0.4964, seeing marginal losses as the rate dropped from yesterday’s highs of 0.4978. The FTSE closed +1.1%. Yesterday was quiet, however tonight will have Claimant Count Change (expected at 21.6k), Flash Manufacturing PMI (expected 50.3) and Flash Services PMI (expected 51.6). This will be the last data piece before the Bank of England’s interest rate decision, with markets expected a very close vote to cut interest rates to 3.75%.
 

NZD

The AUDNZD opens at 1.1483, slightly higher than yesterday’s open however the currency pair saw a trading range of 1.1448 to 1.1520. No data of note yesterday, today or tomorrow however GDP q/q will be released on Thursday. This is widely expected to show an improvement in the Kiwi economy, with markets expecting a reading of 0.9%.