Aussie Dollar Recovers on Renewed Peace Talk Optimism

AUD

The Aussie Dollar opens mixed across the majors this morning and makes some ground back on the USD as hopes of a peace agreement between the United States and Iran improve market sentiment.. Asian equities closed mostly lower to start the week with the Hang Seng -1.1%, the Nikkei -1.0%, and the Shenzhen -1.5%. The ASX traded -1.5% as materials and industrials were heavy at -2.8% and -4.0% respectively. Chinese economic data for April released yesterday and was weaker than expected, as Retail Sales increased by only 0.2% YoY in April, forecasted at 2%, while Industrial Production came in at 4.1%, missing the 5.9% forecast. Today, Monetary Policy Meeting Minutes at 11:30 for the RBA off the back of the last rate decision. The next major data piece will be out this Thursday with Aussie Unemployment Change and Unemployment Rate set to come in at 16.2k and 4.3% respectively. 

USD

AUDUSD opens in the green at 0.7173 off the back of focus shifting towards simmering tensions in the Middle East. Trump says he's instructed US military leaders not to carry out a scheduled military attack on Iran at the request of Gulf leaders who believe a deal will be made that will include no nuclear weapons for Iran. Volatile conditions remained overnight as tensions in the Middle East continued to simmer. On Wall St. the Nasdaq closed -0.5%, the S&P 500 -0.1%, and the Dow Jones +0.3%. U.S.10-year yields were steady at 4.59%, while Brent Crude fell 1% to $108.90 a barrel. Some minor data out of the US today with ADP Weekly Employment Change and Pending Home Sales m/m.
 

EUR

AUDEUR opens the day flat at 0.6152, bouncing back from yesterdays low of 0.6142. European equities closed in the green with the CAC +0.4% and the DAX +1.5% respectively. A quiet first half of the week out of the Eurozone ahead of their PMI data dump on Thursday evening with Manufacturing set to outperform across the board.

GBP

AUDGBP opens in the red at 0.5337, down 30 points from yesterdays open. The FTSE closed in the green at +1.3%. Today, Claimant Count Change, set for 23.1k from a prior 26.8k, Average Earnings Index 3m/y to come in at 3.8% and Unemployment Rate expected to remain unchanged at 4.9% all at 4pm. Tomorrow, Inflation data at 4pm set to lower from 3.3% to 3%, following that Monetary Policy Report Hearings at 11:15pm. 

NZD

AUDNZD opens down at 1.2204 this morning. This morning PPI Input q/q came in at +1.4% (exp +0.8%) and PPI Output q/q came in at +0.8% (exp +0.5%) showing a large increase in manufacturing costs. Next data point to watch for is their Cash Rate decision on Wednesday 27th of May.