AUD Bounces Back Despite Positive US Jobs Data

AUD

AUD opens trading in the green across the majors, despite stronger then expected US Data and tensions in Iran pushing for global intervention. Asian equities finished mixed, the Shenzhen +0.2%, Nikkei -0.4% and the Hang Seng -0.3%. Locally the ASX 200 gained +0.5% as materials and healthcare led the pack at +1.1% and +0.6% respectively. Yesterday, saw a data dump of low significance to currency markets. Looking to China, yesterday we had New Loans at 910B (Forecasted at 820B) and M2 Money Supply y/y at 8.5% (Forecasted at 8.0%) which provided a boost to the Aussie. Looking ahead to next week, Thursday’s local employment data will be what to watch for. Out of China a quiet rest of the month.

USD

AUDUSD opens stronger at 0.6699, just below the 0.67 handle, despite strong unemployment claims and manufacturing data overnight. Wall St. rebounded overnight with the Dow Jones trading +0.8%, the Nasdaq +0.7%, and the S&P 500 +0.6%.  U.S. 10-year yields rose slightly to 4.15%, while Brent Crude fell 4.1% to $63.80 a barrel.  Overnight Unemployment claims came in better than expected at 198k despite expectations of 215k. Empire State Manufacturing Index and Philly Fed Manufacturing Index were stronger too at 7.7 and 12.6 respectively. Fed funds futures have pushed back expectations for the next rate cut to June due to the improving labor data and as Fed policymakers continue to express concern about still sticky inflation. Today looks quiet with all eyes on trumps next move with Iran tensions to close the week.

EUR

AUDEUR rallies overnight to open at 0.5771, climbing roughly 40 basis points from yesterdays open. European equities closed mixed with the DAX +0.3% and the CAC -0.2%. a quiet week overall for currency impacting European data. Today following suit with nothing to close the week, next Friday we have services and manufacturing PMIs.
 

GBP

AUDGBP opens in the green gaining the 50 handle overnight, to open at 0.5006 climbing roughly 35 basis points overnight. The FTSE closed in the green up +0.5%. Yesterday evening, some welcome news as UK GDP m/m improves by +0.4%, Services grew by 0.3%, production grew by 1.1% being the main drivers. Today, Bank of England’s Gov Bailey to speak at the Bellagio Group Meeting to close out the week. Claimant Count Change out Tuesday next week with no expectations yet, previously at 20.1k.
 

NZD

AUDNZD opens in the green, riding high at 1.1661 and still holding the massive gains from late 2025. Nothing of note to close out the week for the Kiwi, next Friday’s inflation data q/q is what to watch for, quiet in the lead up.