AUD Drops as US-Iran Strikes Rattle Markets
AUD
The Aussie dollar takes a hit against all the majors this morning with Iranian/US tensions hitting a boiling point over the weekend. The United States and Israel bombed targets throughout Iran on Saturday in a much more aggressive attempt to destroy Iran’s nuclear program and overthrow the Islamic Republic’s Government. Asian equities were soft into the close, with the ASX up 0.3% and the SHANGHAI COMP up 0.4%. On Friday Private Sector Credit m/m came out lower at 0.5%, expected at 0.7% from 0.8%. Today has the MI Inflation Gauge m/m is set to be released, previously at 0.2% and the ANZ Job Advertisements m/m is also being dropped, previously at 4.4%.
USD
The AUDUSD takes a sharp dive on this morning’s open following the aftermath of the US/Iranian conflict over the weekend, opening this morning at a rate of 0.7033. Wall St was soft into the close on Friday, with the DOW JONES closing down -1.1%, S&P 500 down -0.4% and the NASDAQ down -0.9%. Data wise the US had a strong finish to the week, with PPI for January printed at +0.5% MoM and +2.9% YoY, higher than expectations of +0.3% and +2.6%. Core measures were also generally inline or modestly higher than expected. Looking ahead, ISM Manufacturing PMI and Prices are set to be released early tomorrow morning, with prices looking to improve further and PMI’s slow; with geo-political risk being the biggest factor this week, putting data in the backseat for volatility.
EUR
The AUDEUR opens the day lower, with the pair gapping down on the shattered risk sentiment, opening this morning at a rate of 0.5997. European equities closed mixed, with the CAC down -0.5% and the DAX flat. German Prelim CPI m/m was released on Friday, softening to 0.2%, expected at 0.5% from 0.1%. Looking forward it is a quiet week ahead, with ECB President Lagarde Speaking tonight at an International Women’s Day event and tomorrow Core CPI Flash Estimate y/y is set to release.
GBP
The AUDGBP opens the day marginally down, with the pair flirting with the 0.53 barrier before falling off due to risk sentiment, opening this morning at a rate of 0.5260. British equities had a solid finish to the week, with the FTSE closing up +0.6%. GfK Consumer Confidence came in lower at -19, expected at -15 from -16 previously. It is a quiet week ahead, with Annual Budget Release on Tuesday night being the data of the week, which will give an insight into how much spending the government is looking to do, and how it will play with their sticky inflation.
NZD
The AUDNZD opens the day lower, with the pair touching the 1.19 barrier over the weekend before falling this morning, opening at a rate of 1.1852. There was no data released on Friday, nor will there be any today.