Dollar Slips on Soft CPI

AUD

The AUD opens weaker across all the majors, but flat on the NZD. This is off the back of Trump and the US Commerce Secretary indicating a 55% tariff will remain on Chinese goods. Asian equities finished the day in the green, the Shenzhen and Hang Seng +0.8% and the Nikkei +0.5%. Locally the ASX ended unchanged, despite real estate and energy returning +0.9% and +0.8%. Commodities closed mostly down, however, Crude Oil and Gas, both closed +4.6% respectively. Yesterday, we saw no data or news out of Asia and Australia. Today, MI Inflation Expectations at 11am, no data for China. New Loans is their major data point (tentative) on Friday evening.
 

USD

AUDUSD opens weaker, losing 20 basis-points over night to open at 0.6506, after Trump indicates a 55% tariff will remain on Chinese goods. There was a short-lived spike to 7-month highs of 0.6545 with the USD slipping on the back of weaker-than-expected US consumer inflation. Soft inflation data from the U.S. overnight drove rising expectations of further rate cuts from the Federal Reserve in coming months, although the Fed is still expected to hold rates at the next meeting, holding out until there is more clarity about the impact from President Trump's tariffs. Positively anticipated Core CPI m/m, CPI m/m and CPI y/y all missed expectation, at 0.1%, 0.1% and 2.4% respectively. On Wall St. the technology sector weighed on sentiment and the Nasdaq closed -0.5%, the S&P 500 -0.3%, and the Dow Jones was flat. Tonight, Core PPI m/m, PPI m/m and Unemployment claims all out at 10:30pm.
 

EUR

AUDEURO falls hard overnight, losing a percent to open at 0.5655, mainly due to global trade uncertainty, with little notable Eurozone data. European equities closed down, with DAX and CAC down -0.2% and -0.4% respectively. Minimal currency impact German, French and Italian Final CPI and Trade Balance data out for the rest of the week.
 

GBP

AUDGBP also falls overnight, losing roughly 40 basis points to open at 0.4798 off the back of low AUD defensive data and global uncertainty. The FTSE closed pretty flat at +0.1%. Yesterday, we saw low currency impact 10-y Bond Auction data. Today, GBP, GDP m/m data out expected at -0.1%, previously at 0.2%. This afternoon lower impact Industrial, Manufacturing and Trade Balance data out.
 

NZD

AUDNZD opens mostly unchanged at 1.0781. Today, no data, tomorrow morning, Business NZ Manufacturing Index. Another quiet week for the NZ and the NZ Dollar.