AUD Holds Gains as Consumer Confidence Slips
AUD
The Aussie Dollar opens mixed against the majors following headlines of renewed Middle East peace talks, yet the double blockade of the Strait of Hormuz continues. Asian equities were higher across the board yesterday with the Nikkei trading +2.4%, Shenzhen +1.2% and the Hang Seng +0.8%. Locally the ASX 200 ended higher +0.5% as technology and materials sectors outperformed at +3.3% and +1.8%. RBA Deputy Governor Andrew Hauser maintained a hawkish tone at the RBA Fireside chat yesterday morning, warning that inflation expectations may become unanchored and suggested that current interest rates may not be enough to bring inflation back to target, implying further rate hikes. Australian business confidence fell to minus 29 points in NAB’s March survey, being the lowest in six years and the largest monthly drop since the start of COVID. In China their Trade Balance fell short, coming in half what was expected at 335B, falling from 1503B, this shows that China is struggling to find demand in the global west for their products. Looking forward there is no data today, and the next drop will be Thursday’s Employment Report, giving the guide into how heavily RBA can hike.
USD
The AUDUSD opens the day higher, with the pair pushing towards monthly highs, opening this morning at a rate of 0.7128. On Wall St. the Nasdaq closed +2%, the S&P 500 +1.2%, and the Dow Jones +.9%. Last night saw U.S. PPI for March printing at +0.5% MoM and +4.0% YoY, weaker than expectations of 1.1% and 4.6% with core measures also failing to hit expectations. This, combined with some headlines suggesting that there was some progress in a possible U.S.-Iran deal saw the USD weaken. Later this evening will have Empire State Manufacturing Index, looking to raise to 0.3% from -0.2. Looking ahead, tomorrow will see US Unemployment Claims and the Philly Fed Manufacturing Index.
EUR
The AUDEUR opens the morning higher, with the pair pushing up against the monthly high overnight, opening at a rate of 0.6044. European equities were green into the close, with the DAX up +1.3%, and the CAC up +1.1%. ECB President Lagarde spoke last night on the war in the Middle East and noted that the ECB does not have a tightening bias. Tonight, we have Industrial Production m/m expected to raise to 0.3% from -1.5%.
GBP
The AUDGBP opens the day flat, with the pair shifting sideways in the overnight session, opening this morning at a rate of 0.5254. British Equities finished soft, with the FTSE slightly up at +0.2%. BOE Gov Bailey spoke last night in New York and noted that central bank independence for financial stability is not robust enough. He is due to speak again in Washington tomorrow morning.
NZD
The AUDNZD opens the day lower, with the pair dropping small gains overnight, opening this morning at a rate of 1.2077. There was no news out overnight and nothing further coming up until tomorrows RNBZ Gov Breman Speech.