Aussie Dollar Edges Higher Despite USD Resilience

AUD

The Aussie Dollar sees a slight rebound, opening higher against the majors this morning despite persistent strength in the US Dollar. Asian equities finished higher yesterday with the Nikkei +2.4% and the Shenzhen and Hang Seng both +.3%. Locally the ASX 200 edged slightly higher as healthcare and materials sectors outperformed at +.8% and +.4% respectively. Some minor domestic data out yesterday with the Melbourne Institute Inflation data coming in at .3% m/m from a previous .5%. Later this morning will see the release of the Westpac Consumer Sentiment survey and ANZ Job Advertisements m/m. Across Asia, Chinese banks remain closed for Golden Week and BOJ Gov Ueda is due to deliver opening remarks at the National Securities Conference later this evening. 

USD

AUDUSD opens higher this morning at a rate of 0.6969 despite robust US services data and elevated treasury yields. The technology sector lifted Wall St. higher overnight with the Nasdaq closing +1.1%, the S&P 500 +0.7% ( and near to record highs ), and the Dow Jones +0.2%. U.S. 10-year yields rose 4bps to 5.31%, while Brent Crude fell 2.2% to $100 a barrel. U.S. Services PMI data for September was revised up to 58.8 from 58.7, marking the sharpest rise in the sectors business activity since July 2021. Released shortly afterwards, September ISM Services printed at 54.9, down from 55.4 and below expectations of 55.0. Later this evening will see the release of the ADP Weekly Employment Change, which will show data from the weeks ending Sep 12th and Sep 19th as the data was previously delayed. US Trade Balance will also be released, currently forecasted at -100.8B from a previous -88.6B.

EUR

AUDEUR opens in the green at 0.6212 this morning as European political uncertainty weighs on the Euro. European equities closed mixed with the DAX and CAC coming in at +0.1% and -0.8% respectively. Final Services PMI for Europe came in as expected at 53.0 (prev 53.0), with the survey noting that the Euro area growth has hit its strongest in almost three-and-a-half years. Retail Sales m/m will be released later this evening, currently expected to show a light increase at +0.2% from a previous -0.6%. 

GBP

AUDGBP opens higher at a rate of 0.5272 this morning as the Aussie Dollar rebounded from last weeks losing streak. UK equities closed in the green, with the FTSE coming in at +0.3%. September UK S&P Global Services PMI came in higher than market expectations at 52.1 (Est. 51.7). Some minor data out today with the UK Construction PMI, currently expected at 45.0 from a previous 44.3.

NZD

AUDNZD saw a return to form, opening at a rate of 1.2448 this morning. ANZ Commodity Prices m/m released yesterday morning at +0.6% from a previous -0.4%. Earlier this morning the NZIER Business Confidence survey released, coming in at +43 from a previous +8.