Greenback Extends Post-Fed Rebound

AUD

Little data and geopolitical news see the AUD kick off the week mixed against the majors. Asian equities ended the week mixed, Shenzhen finishing +0.1%, Hang Seng flat and the Nikkei -0.6%. Locally the ASX 200 climbed +0.3% as technology and health care sectors lead the pack at +0.9% each. Later this morning, RBA Governor Bullock is due to testify before the House of Representatives Standing Committee on Economics. China will also release their key interest rate decisions for the month. The highlight for the week will be Aussie consumer inflation, on Wednesday morning.
 

USD

AUD/USD opens at 0.6593, touching 12-day lows of 0.6586 earlier this morning, with the USD extending its rebound against most major currencies as traders review the near-term outlook after the Federal Reserve cut interest rates, but signaled gradual easing in the future. Wall St. closed out the week in the black with the S&P 500 +0.5%, Nasdaq +0.7% and the Dow +0.4%. Various FOMC Members are speaking overnight. Flash PMIs tomorrow. Highlights for the week include Fed Chair Powell Speaking, GDP, Unemployment Claims and the Core PCE Price Index.
 

EUR

AUD/EUR opens flat relative to Friday's open, touching 0.5598 ls in the afternoon before gaining 0.3% to open today at 0.5616. The DAX fell -0.1% and the CAC as flat. Overnight, we'll see Eurozone Consumer Confidence data. Tomorrow, we'll see Flash PMIs.
 

GBP

AUD/GBP starts the week a little higher at 0.4894, gaining +0.5% on Friday afternoon despite a stronger-than-expected Retail Sales print (actual +0.5%, exp. +0.4%). The FTSE fell -0.1%. MPC Member Pill will be speaking this evening. Bank of England Governor Bailey will be speaking in the early hours. UK Flash PMIs are set for release tomorrow.
 

NZD

AUD/NZD remains elevated at 1.1257, neat last week's 3-year highs of 1.1279 off the back of a surprise slump in New Zealand GDP (-0.9% quarter-on-quarter). The NZD softened further after the Kiwi trade deficit widened sharply. Data on Friday showed New Zealand's Trade Balance has significantly deteriorated, with the figure showing a deficit of NZD 1.185 billion, compared to the previous deficit of NZD 716 million. There are zero data from NZ this week.