Markets Rattled Ahead of Geopolitical Risk

AUD

The AUD opens mixed across the board, weaker on the US and relatively flat on the major currencies. A quiet day for global data, US Iran uncertainty continues. Asian equities were mixed on Wednesday with the Nikkei -0.8%, Hang Seng flat and the ASX 200 +0.8%, led by the mining and energy sectors. AUD/USD had a muted trading session during the Asian hours, settling near 0.7020 as Europe came online. Yesterday, the Aussie Dollar found its feet after the RBA’s decision to hike interest rates. Today, Goods Trade Balance and NAB Quarterly Business Confidence to close out the week for Aussie data.

USD

AUDUSD opens slightly down at 0.6999 weakening from yesterdays 0.7020 post rate hike. A mixed session on Wall St. saw the Nasdaq trading -1.3%, the S&P 500 -.3%, and the Dow Jones +0.7%, entering the final hours of North American trade.  U.S. 10-year yields were steady at 4.27%, while Brent Crude rose 3.3% to $69.50 a barrel.  Gold was trading just below $5000 while Silver had settled at $86.50 an ounce. Yesterday was quiet for US data. Overnight, ADP Non-Farm Employment Change indicated a miss at 22K, exp 46K. Tomorrow, we see JOLTS Jobs and Unemployment Claims out of the US, giving us a much better understanding of US jobs.
 

EUR

The EUR opens slightly down but relatively flat at 0.5927. European equities closed mixed, with the DAX down -0.7%, and the CAC up +1%. Yesterday evening, Eurozone Core CPI Flash Estimate y/y and CPI Flash Estimate y/y were released at 2.2% and 1.7% respectively. Today we have German Factory Orders m/m, French Industrial Production m/m and Italian Retail Sales m/m which will be low currency impacting . All eyes on tomorrow’s rate decision set to release overnight, expecting to hold on 2.15%.  
 

GBP

The GBP opens the day pretty flat at 0.5124 almost the exact same rate as yesterdays open. The FTSE closed in the green up 0.9%. All eyes on today’s Cash Rate Decision, Bank of England is looking highly likely to keep rates on hold at this week's meeting at 3.75%, with ears on commentary for potential cuts this year.
 

NZD

AUDNZD opens the day in the green at 1.1662 after New Zealand Unemployment rises to 5.4% which is the highest in around a decade. This caused the NZD to slip against the Aussie. No major data scheduled for the forseeable out of New Zealand and Friday will be a bank holiday.