AUD Wobbles After International Data Dump
AUD
The Aussie dollar opens rather flat across the board, with no impactful data being released for the AUD until next year. The ASX ended the day flat, as energy (-1.5%) losers were largely offset by consumer staples (+0.6%) and comm services (+0.5%). Asian equities were lower in light trade, Nikkei -1%, Hang Seng -0.2%, and Shenzhen -0.6%. Very quiet day ahead for data out of Australia and China. Out of Japan they have their rate decision today where they are expected to hike rates to 30-year highs from 0.50% to 0.75%. There is nothing out over the weekend.
USD
AUDUSD opens very slightly up at 0.6611, a rebound on Wall St. overnight saw the Nasdaq trading +1.3%, the S&P 500 +0.7%, and the Dow Jones +.2% late in the session. Yesterday we saw CPI y/y come out at 2.7% down from previous 3.0%, as well as unemployment claims out at 224k down from 237k. America follows suit with a quiet end to the week until their prelim GDP q/q is out next Tuesday.
EUR
AUDEUR opens up at 0.5641, European markets also moved higher into the close with the CAC +0.8% and the DAX +1.0%. The ECB left rates on hold at 2.15% as widely expected and noted that they stood ready to adjust all policy instruments as required and decisions would be made on a data dependent and meeting by meeting basis. Economic growth forecasts for 2026 and 2027 were revised higher with inflation forecasts mixed with 2026 revised higher and 2027 revised modestly lower. From here to the boxing day there is no impactful data to be released.
GBP
AUDGBP opens flat at 0.4942, the FTSE closed at 0.6%. The Bank of England cut rates by 25bp to 3.75% as expected with the decision passing with a 5-4 vote as 4 members voted for no change to policy. The accompanying statement noted that rates were likely to continue on a downward path and decisions on further easing will be a closer call. Today there is Retail Sales m/m expected at 0.3% up from previous -1.1%.
NZD
AUDNZD opens flat at 1.1445, yesterday GDP q/q was released at 1.1% up from previous -1.0%. This morning NZ Trade Balance was released at -163M down from -1598M. The rest of the year will be data free for New Zealand.