Aussie Dollar Eases Post US Jobs Data

AUD

AUD opens weaker across the board, slightly retreating from the highs we’ve seen in the last 36 hours, following stronger then expected US Employment data coming out. Asian equities finished the session mixed with the Hang Seng losing -0.9%, Shenzhen +0.1% and the Nikkei unchanged. The ASX 200 finished higher by +0.3% , with utilities and financials outperforming at +3.5% and +2.4% respectively. MI Inflation Expectations came in at 5% yesterday, previously at 4.6%. Today, quiet with CB Leading Index out on expectation and matching prior data release. A quiet weekend to follow. 

USD

AUDUSD opens down at 0.7089, following strong employment data and a renewed selloff of US stocks. Souring risk sentiment weighed on Wall St. overnight and saw the Nasdaq trading -1.5%, the S&P 500 -1.1%, and the Dow Jones -.9%, late in North American trade. U.S. 10-year yields fell 7bps to 4.10%, while Brent Crude fell 3% to $67.30 a barrel. Claims of unemployment in the US went up to 272K from 222k expected. All eyes will now be on tomorrow with Core CPI, CPI m/m, and y/y expected 0.3%, 0.3% AND 2.5% respectively. 

EUR

The AUDEUR softens overnight, pushing up briefly into the 0.60s before dropping the handle, opening this morning at a rate of 0.5974. European equities were soft into the close, with the CAC up 0.3% and the DAX was flat. Yesterday was a data-free day, making the pair shift off wider global factors. Tonight will see the Eurozone’s Flash GDP q/q, expected to remain at 0.3%.
 

GBP

AUDGBP opens slightly in the red at 0.5204 following a flurry of economic data out yesterday evening. The FTSE closed at -0.7%. Yesterday GDP m/m came in at expectations at 0.1% while Prelim GDP q/q missed slightly coming in at 0.1% (forecasted at 0.2%). Looking ahead to next week the main focus will be on Tuesday with Claimant Count Change data to be released.

NZD

AUDNZD opens down at 1.1749, still hovering around the 13 year highs. Early this morning Visitor Arrivals m/m printed at 1.7% and BusinessNZ Manufacturing Index came in at 55.2, showing a retraction since last month. Later this afternoon Inflation Expectations q/q are set to release as the RBNZ heads into their Official Cash Rate decision next Wednesday.