AUD Firms Ahead of RBA Rate Decision

AUD

The AUD saw slight gains against the major currencies, bouncing back from three consecutive days of losses ahead of the RBA decision today. The RBA is largely predicted to hold their interest rates at 3.60%, with many believing that there will be no more cuts this cycle as Aussie inflation remains sticky. The associated press conference and statement, as well as Chinese PMIs, are the main data events for the AUD this week, with China starting their week-long public holiday from tomorrow. On equities, the ASX closed +0.2%, Shanghai Comp -0.7% and Nikkei -0.9%. Commodities closed slightly better, with the largest movers Silver +2.0%, Wheat -1.4% and Oil +1.1%.
 

USD

The AUD/USD opens at 0.6579, as the USD weakens due to increased risk of a US government shutdown over budget funding. The US government is required to pass their bill tonight, with implications on the USD as American employment data later this week would be delayed. Wall Street closed higher, with Dow Jones +0.7%, S&P500 +0.6% and Nasdaq 0.4%. The next data point is JOLTS Job Openings, expected to remain flat at 7.19M.
 

EUR

The AUD/EUR opens higher at 0.5608, as the AUDEUR trades between 0.5586 and 0.5613 over the weekend. European equities closed up, with the DAX +0.9% and CAC +1.0%. Yesterday saw Spanish Flash CPI y/y release at 2.9% vs expectations of 3.1%. Today will see German Prelim CPI m/m, expected to release at 0.2%. The next data event would be Eurozone inflation figures, releasing at 7pm tomorrow.
 

GBP

The AUDGBP opens at 0.4896, briefly regaining the 0.4900 this morning, touching 0.4902 highs earlier. English equities closed higher, as the FTSE closed +0.8%. A relatively quiet week for English data, as only minor economic data is expected to be released.
 

NZD

The AUD/NZD opens at 1.1381, reaching 3-year highs as the NZD suffers weakness from a poor Kiwi economy. Today will have ANZ Business Confidence, which will indicate a 12-month outlook on conducting business.