AUD Fails to Hold Gains
AUD
The Aussie dollar opens the day having given up some of Tuesday's gains across the majors in anticipation of the global PMI release tonight. Commodities traded in a similar vein with Crude Oil down 1.1%, Nat Gas down 1.4%, Gold was up 0.4%, Silver 0.2%, Copper up 0.2% and Iron Ore down 0.1%. Asian Equities saw small gains, with the ASX up 0.5%, and Shanghai Comp up 0.2%. G7 meetings kicked off yesterday, with Trump’s Tariffs set to be in the main focus, seeing how the international relations will be delegated under these new pressures. Local PMIs were released at 9am this morning, with the Flash Manufacturing PMI remain unchanged and expansionary at 51.7, whilst the Services dropped 0.5 to 50.5, showing the slowest rise in new orders in 2025 so far. Later today will see the RBA Deputy Gov Hauser speaking on his recent trip to China.
USD
The AUDUSD sees a retracement of movement in the past 24 hours, with the pair touching a weekly high of 0.6470 overnight before giving up nearly all its gains, opening this morning at a rate of 0.6433. Wallstreet traded lower into the close, with the NASDAW closing down 1.4%, S&P 500 down 1.6% and the DOW JONES down 1.9%. The selloff of US assets resumes as concerns about ballooning US Government debt pushed the 30-year Treasury yield over 5% to its highest level in 18 years. Crude Oil Inventories came in at 1.3m, with expectations of a drop of 4.4m from 3.5m. Tonight will see US Unemployment Claims (expected to remain unchanged), followed by Flash Services PMI expected to continue to expand, gaining 0.2 to 51, whilst the Manufacturing PMI us expected to do the opposite, drop 0.3 into contractionary territory of 49.9.
EUR
The AUDEUR continued to slide yesterday, opening this morning at 0.5683, representing a 2 week low. European equities were mixed into the close, with the DAX closing up 0.4%, and CAC shedding 0.4%. the ECB Financial Stability Review was released last night, it was ineffectual to the rate. Tonight will see Flash PMIs for Germany, France and The Zone set to be released, with both Services and Manufacturing expected to remain contractionary, with only the Flash Services PMI’s for the union to remain expansionary. It will give a reading of how the Eurozone is handling Trump’s tariffs, especially their auto-industry tariffs, being a large part of the European manufacturing economy.
GBP
The AUDGBP has seen an uneventful 24 hours, with the pair keeping in a tight range, opening this morning flat at 0.4797. British equities where also uneventful, with the FTSE finishing up 0.1%. Inflation readings came out higher than expected, with the CPI y/y climbing 0.9% to 3.5%, outshining expectations of a 0.7% gain due to the well-publicised rise in household energy and water bills. As with the rest of the world tonight will see the release of Flash PMIs, with the Services measure expected to improve back into expansionary territory, whilst Manufacturing is still expected to be contractionary.
NZD
The AUDNZD opens the day flat, with no notable movements since yesterday morning, opening this morning at a rate of 1.0841. We saw Credit Card Spending y/y lower to 0.5%, from 0.7%. At midday today NZ will have its Annual Budget released, with economists expecting the Treasury to maintain its forecast for an operating surplus in 2029.