Aussie Dollar Strengthens Ahead of CPI Data Release

AUD

AUD opens stronger across all the major currencies, continuing to shrug off the turmoil in Venezuela and holding strong to start the year. A positive session for Asian equities saw the Shenzhen trade +1.6%, Hang Seng +1.4% and the Nikkei +1.3%. Locally the ASX 200 ended -0.5% as utilities and consumer staples led the losses with -2% and -1.8% respectively. A quiet day out of China, all eyes on Aussie CPI, m/m, y/y and Trimmed Mean CPI m/m set to come in at 0.1%, 3.6% an 0.2% respectively. Markets currently imply only a 36% chance of a February hike, suggesting scope for a sharp move should the November CPI surprise on the upside. A quiet rest of week for the Aussie, Chinese CPI and PPI y/y set to release Friday afternoon.

USD

AUDUSD opens stronger rallying a further 20 points from yesterdays opens to open at 0.6738. A positive session on Wall St. saw the Dow Jones trading +.9%, the S&P 500 +.5%, and the Nasdaq +.4% late in the North American session.  U.S. 10-year yields were slightly higher at 4.18%, while Brent Crude fell 1% to $61.10 a barrel. The impact of the shock U.S. capture of Venezuelan President Nicolas Maduro over the weekend was short-lived across most asset classes and particularly in currencies. In the early morning tomorrow morning, ADP Non-Farm Employment, ISM Services PMIs and JOLTS Job Openings are set to release, expected at 49K, 52.2 and 7.61M respectively.

EUR

AUDEUR also opens stronger 35-40 points higher than yesterdays open, currently sitting at 8 month highs. European equities closed in the green, however, relatively flat with the DAX up 0.1% and the CAC 0.3%. This evening, Eurozone Core inflation Flash Estimate y/y and CPI Flash Estimate y/y expected at 2.4% and 2.0% respectively. No news to follow to round out the week.
 

GBP

AUDGBP opens 25-30 points stronger at 0.4991 creeping towards the 50 handle we haven’t seen consistently since Feb 2025’. The FTSE closed in the green up 1.2%. Minor currency impacting Construction PMI and Housing Equity Withdrawal q/q data out this evening. No major data planned for the remainder of the week for the Pound.
 

NZD

AUDNZD opens in the green at 1.1643 following suit at a 30-point gain from yesterdays open. Trading in the range of 13-year highs on the AUDNZD. No major kiwi data out this week.