Ceasefire Extension Creates Cautious Aussie Dollar
AUD
The Aussie Dollar opens the day mixed, with the risk-on currency holding it’s breath as the ceasefire deadline extends for now. U.S. President Trump announced that a ceasefire would continue until peace talks are concluded with a date still not agreed upon currently. Some headlines suggest that the U.S. may be ready to loosen the naval blockade as well. Asian equities ended higher yesterday with the Nikkei trading +0.9%, Hang Seng +0.5% and Shenzhen +0.2%. Locally the ASX 200 fell slightly as energy and health care sectors led losses, falling 0.9% and 0.4% respectively. There was no local data released yesterday, but today at 10:30am we have MI Leading Index m/m set to be released, previously at -0.1%.
USD
The AUDUSD sees a small decline yesterday, with the pair opening this morning at a rate of 0.7151. Wallstreet bled into the close, with the DOW JONES, S&P 500 and the NASDAQ all closing down 0.6%. U.S. Retail Sales for March rose 1.7% MoM to beat forecasts of +1.4% with core measures all coming in much higher than expected. Fed Chair nominee Warsh testified before the Senate Banking Committee and said that his view was that the inflation risk had improved and that he did not believe in forward guidance or previewing decisions. Amongst other comments he also said that he would “absolutely not be the President’s sock puppet”. Later today will see FOMC member Waller speaking, but all eyes are pinned to the events in the Middle-East unfolding.
EUR
The AUDEUR opens the day flat, with the pair keeping within a tight range, opening this morning at a rate of 0.6092. European equities finished in the red, with the DAX closing down -0.6% and the CAC dropping -1.1%. ZEW Economic Sentiment fell last night, reading a -20.4 from -8.5, expected at -12.7. Today is a quiet day, with PMI’s to be released tomorrow, which will give insight into how the energy crunch has affected the Europeans. ECB President Lagarde will continue her run of speeches early tomorrow morning at the "Global ideas for global challenges" panel in London
GBP
The AUDGBP slides sideways, with the pair hovering around the 0.53 handle, opening this morning at a rate of 0.5296. British Equities were down into the close, with the FTSE down -1.0%. Claimant Count Change increased to 26.8k, expected at 22.6k from 17.1k, and the Average Earnings Index 3m/y slowed to 3.8% from 4.1%, expected at 3.6%. Later today will see the CPI y/y coming out, expected to rise to 3.3% from 3%, showing a clear “second wave’ of inflation in the UK.
NZD
The AUDNZD sees a small drop, with the pair mostly trading sideways, opening this morning at a rate of 1.2134. GDT Price Index came out higher overnight, coming out at -2.7%, previously at -3.4%; there will be no further data today.