AUD/USD Logs 5-Session Decline
AUD
Quiet trading sees the Aussie Dollar open mixed against the majors, with markets awaiting the annual Jackson Hole Symposium in the U.S., kicking off tonight. Federal Reserve Chair Powell's speech will draw particular attention given the large degree of uncertainty surrounding future monetary policy decisions in the U.S. Asian equities ended the day mostly lower, Nikkei -0.7%, Hang Seng -0.2%, and Shenzhen +0.4%. The ASX 200 closed +1.1% as industrial and consumer staples lead gains. No major Aussie data set for release today. On Tuesday, we'll see the RBA Monetary Policy Meeting Minutes, providing insight into the cental bank's recent decision to cut the cash rate. On Wednesday, we'll see Australia's CPI figure. Last month, the annual figure was 1.9%. No expectations are currently posted for next Wednesday's figure.
USD
AUD/USD has experienced five consecutive days of losses, touching 2-month lows of 0.6415 overnight, starting today at 0.6422. Markets are waiting on Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium where there may be indications of future Fed policy decisions. Wall St. finished lower with the Dow -0.3%, S&P 500 -0.4% and the Nasdaq -0.3%. Overnight we saw Flash Manufacturing PMI and Flash Services PMI both coming in higher than expected at 53.3 and 55.4. The FOMC Meeting Minutes were also released with the main points being that the full effect of tariffs could take some time and some participants stating it would also not be feasible to wait for the complete effect of the tariffs on inflation before adjusting monetary policy. No key U.S. data ahead of Durable Goods Orders, Tuesday evening.
EUR
AUD/EUR opened up at a rate of 0.5533 after recovering from a fresh 18-week low of 0.5507 overnight following a number of positive PMI data results out of the Eurozone. The DAX closed +0.1% and the CAC fell -0.4%. The Eurozone Manufacturing Purchasing Managers Index (PMI) rose to 50.5 in August from 49.8 in July, exceeding the market expectations of 49.5 by a considerable margin. Later this afternoon we have German Final GDP q/q.
GBP
AUD/GBP opens flat at 0.4787 following some mixed PMI results out of England. The FTSE closed +0.2%. The Manufacturing PMI declined to 47.3 in August from 48.0 in July, missing expectations of 48.2. The Services PMI jumped to 53.6 in August versus July’s 51.8 (expected at 51.8). Looking ahead, a quiet week in England in terms of data, starting with a Bank Holiday on Monday.
NZD
AUD/NZD opens flat at 1.1036. Some minor data from New Zealand yesterday with Credit Card Spending y/y rising 1.4% and NZ Trade Balance coming up at -578M. Another quiet week next week for New Zealand. On Monday we have Retail Sales q/q and on Thursday we have ANZ Business Confidence.