US Imports Deliver Biggest Monthly Fall Ever

AUD

AUD opens the week with scattered small moves among the majors, after what was overall a quiet weekend with little shock in Chinese data and no trade war developments. On Friday Asian equities finished the day in the red, Nikkei and Hang Seng both -1.2%, and Shenzhen -0.5%. The ASX 200 traded +0.3%, carried by gains in utilities and consumer staples. China had Manufacturing PMI and Non-Manufacturing PMI out on Saturday coming in at 49.5 and 50.3 which were largely in-line with expectations. China has a bank holiday today and rather slow week ahead no major data out. Australia has the RBA's Monetary Policy Meeting Minutes out tomorrow and GDP q/q out Wednesday being our two big drivers for the week.

USD

AUDUSD opens slightly higher at 0.6440, little data out over the weekend though President Trump alleged China had broken its trade agreement without providing further details. Of note late Friday, US imports delivered the biggest monthly drop on record, losing 19.8% as a direct result of Trump's tariff strategy. A mixed session in equities to end the week saw the Dow Jones close +.2% the Nasdaq -.3%, and the S&P 500 -.1%. Friday night's Core PCE inflation data showed a modest 0.1% mom increase which was as expected. Looking to the this week, big data points will be labour related - US job data with JOLTS Job Openings out Wednesday and Friday producing the Non-Farm Employment Change and Unemployment Rate.

EUR

AUDEUR opens ever slightly up at 0.5677, following a week of trade uncertainty among the pressures put on the Euro economy with tariff threats from US, little change was seen with markets not clear on where the talks will eventually land. With the tariff situation fluid, no surprise European Equities closed mixed with Dax +0.3% and CAC -0.4%. Today we have Spanish, French and Italian Manufacturing PMI Data. Thursday will be the day to watch as European Main Refinancing Rate expected to cut to 2.15% from 2.40% with the ECB Press Conference to follow.
 

GBP

AUDGBP similar to EUR, trading slightly up at 0.4788 which is about 25 bps from last week's 1-month lows. FTSE closed in the green at + 0.6%. A relatively quiet week ahead other then a few data pieces released today, Final Manufacturing PMI out expected at 45.1, M4 Money Supply m/m expected 0.2% from previous 0.3% and Mortgage Approvals forecasted at 65k up from 64k from previous 30 days.
 

NZD

AUDNZD opens sideways at 1.0785, following a big week of NZ data which delivered a cut in the Official Interest Rate down 25 basis points to 3.25%. Today is a bank holiday for New Zealand and the week to follow will see Overseas Trade Index q/q, GDT Price Index and ANZ Commodity Prices m/m.