AUD Rallies Amid Heightened Tensions over Greenland
AUD
The AUD is up against the major currencies, with the Aussie Dollar struggling to find direction amid geopolitical turmoil. No data locally yesterday, however Chinese economic data was released with mixed results, with the Unemployment Rate beating expectations (5.1% vs 5.2%) and Fixed Asset Investment ytd/y missing expectations (-3.8% vs -3.1%). On equities, the ASX closed -0.3%, Shanghai Comp +0.3% and Nikkei -0.7%. Commodities followed suit, with Natural Gas -5.0%, Sugar +2.7% and Wheat +1.5%. No economic data today out of Australia, the main focus for local data this week will be Employment data on Thursday
USD
The AUDUSD opens higher at 0.6715, seeing USD weaken over renewed tariff threats against the EU and political uncertainty. No data yesterday with the American bank holiday (MLK day). Wall Street saw a slight drop, with the Dow Jones -0.2%, S&P500 -0.1% and Nasdaq -0.1%. Today, markets will keep an eye on words out of the WEF (World Economic Forum) meetings today in Switzerland as the future of Greenland looms over the gathering of world leaders and businesses. The forum comes at a time when the United States has threatened to impose additional 10 percent tariffs on eight European ally countries that have opposed its aim to annex Greenland.
EUR
The AUDEUR opens a touch higher at 0.5767, as Euro markets saw a drop following threats of renewed tariffs and a flare-up over sovereignty over Greenland. European equities were harshly affected, with the DAX -1.3% and CAC -1.8%. Minor economic data was released out of the Eurozone with Final Core CPI y/y and Final CPI y/y. However the finalised figures had minimal effects on the AUDEUR. No data to look out for until tomorrow night, with ECB President Lagarde Speaking and the WEF Annual Meetings currently being held.
GBP
The AUDGBP opens at 0.5001, regaining the 0.5000 handle this morning from the strengthening of the AUD. No data was released yesterday from England and the FTSE closed -0.4%. Tonight will have employment data released, with the main piece being Claimant Count Change (expected at 15.6K) and Average Earnings Index 3m/y (expected at 4.6%). Additionally, BOE Gov Bailey will testify on the Financial Stability Report in London.
NZD
The AUDNZD opens down at 1.1576, continuing this week’s decline as the NZD recovers from this year’s losses. This morning had BusinessNZ Services Index release at 51.5, potentially showing an improvement in business conditions in New Zealand. No data to be released until Friday’s inflation figures, however the WEF Annual Meetings may affect the rate depending on what plays out.