AUD Rallies Ahead of Key Employment Data

AUD

The AUD opens in the green across the majors off the back of the possibility of a ceasefire extension in the Middle East. Asian equities ended mixed yesterday with hopes that U.S.-Iran negotiations could resume in the coming days. The Nikkei traded +0.4%, Hang Seng +0.3% and Shenzhen -0.3%. Locally the ASX 200 climbed +0.1% as technology and health care sectors lead gains of +2.4% and +0.9%. Today will see some key Australian data to be released with Employment Change expected at 19.1K, down from the previous reading of 48.9K and the Unemployment Rate to remain unchanged at 4.3%. Elsewhere in Asia we will see a flurry of Chinese economic data with Unemployment Rate, GDP q/y and Retail Sales y/y to be released at midday today.

USD

AUDUSD opens in the green, rallying in the range of March’s 3-year highs off the back of improved risk sentiment due to a potential ceasefire extension. Risk sentiment remained supported overnight and saw the S&P 500 reach an all-time high driven largely by increased optimism in U.S. and Iran negotiations. U.S.10-year yields rose 3bps to 4.28%, while Brent Crude was steady at $94.80 a barrel. Today, Philly Fed Manufacturing Index and Unemployment Claims expected at 10.3 and 213K respectively. A quiet end to the week data wise, all eyes and ears will now be on the possibility of peace talks between the US and Iran and any further tit-for-tat economic sanctions.

EUR

AUDEUR opens in the green, pushing through the 0.6050 barrier we’ve seen it trade in for the last week to open at 0.6076 in response to global developments in the middle east. European equities closed mixed with the DAX up +0.1% and CAC -0.6%. Overnight, ECB President Lagarde spoke at the International Monetary Fund Spring Meetings, in Washington DC. She noted that higher energy costs have pushed the eurozone away from the European Central Bank’s (ECB) base-case outlook, though not enough yet to warrant leaning towards raising interest rates. Following that we have a few points of low economically impactful data, all interest now squarely on next week’s PMIs.

GBP

AUDGBP opens in the green, at 0.5285 edging closer to that 53 handle. The FTSE also closed in the red at -0.5%. Overnight, Gov Bailey also spoke at the International Monetary Fund Spring Meetings, in Washington DC to participate in a panel discussion titled "Managing Global Imbalances: Policy Priorities". This afternoon, UK GDP m/m is set to increase from 0% to 0.1%. 

NZD

AUDNZD opens stronger at 1.2123 this morning. Earlier this morning, RBNZ Gov Breman also spoke at the Peterson Institute for International Economics Spring Meeting, in Washington DC. Following that, no scheduled data until next Tuesdays CPI q/q, no expectations yet, however the previous recording was 0.5%.