Aussie Dollar Restrained by Overnight Risk-Off Session

AUD

The AUD opens lower against the major currencies as risk sentiment soured overnight due to supply chain fears from the US-Iran War intensifying. Asian equities closed lower as well, with the ASX -1.3%, Shanghai Comp -0.1% and Nikkei -1.0%. Commodities continued to be volatile and gained yesterday, with Oil closing +10.6%, Natural Gas +1.6% and Coal +1.4%. Yesterday, Consumer Inflation Expectations rose in March to 5.2%, its highest since July 2023, from 5% in February, according to the Melbourne Institute survey. No major economic data out of Australia until the RBA rate decision at Tuesday 2:30pm.

USD

The AUDUSD opens lower at 0.7073, losing 0.8% over the day as the USD had its strongest day in 2026. Risk sentiment soured overnight, as Crude Oil reached US$100 a barrel again and optimism that the US-Iran War would finish soon faded. Wall Street closed in the red, with Dow Jones -1.3%, S&P500 -1.3% and Nasdaq -1.7%. American Unemployment Claims released last night at 213K vs. expectations of 214K. Tonight will see plenty of major economic data out of America, with Core PCE Price Index m/m (exp. 0.4%), Prelim GDP q/q (exp. 1.4%), Core Durable Goods Orders m/m (exp. 0.5%), Durable Goods Orders m/m (1.1%), Prelim GDP Price Index q/q (exp. 3.6%), JOLTS Job Openings (exp. 6.76M), Prelim UoM Consumer Sentiment and Prelim UoM Inflation Expectations. More volatility than usual can be expected, as markets digest the data releases with the US-Iran War.
 

EUR

The AUDEUR opens lower at 0.6142, losing 0.6% over the day as markets flocked to safer assets. European equities fell overnight with the DAX -0.2% and CAC -0.7%. No data out of the Eurozone until Thursday night’s ECB rate decision, where they are expected to hold the Main Refinancing Rate to 2.15%.
 

GBP

The AUDGBP opens lower at 0.5301, losing 0.5% over the day as markets rotated away from the AUD. British equities fell along with global equities, as the FTSE closed -0.5%. No data out of England yesterday, and tonight will have GDP m/m (expected to release at +0.2%).
 

NZD

The AUDNZD opens flat at 1.2090. Earlier this morning, BusinessNZ Manufacturing Index printed at 55.1 and Visitor Arrivals m/m came in at at 0.9%, which is down from last month’s reading of 1.6%.