AUD Recovers Ahead of Crucial Employment Data
AUD
The Aussie Dollar opens higher against the major currencies this morning, as risk sentiment improved overnight from increased possibilities of a US-Iran peace deal. No economic data to note yesterday as most of the volatility arose from the US-Iran war updates. Asian equities were down on the close, with the ASX -1.3%, Shanghai Comp -0.2% and Nikkei -1.2%. Commodities also fell, as Oil closed -5.6%, Natural Gas -5.6% and Silver +2.9%. Today will have our Employment Change (exp. 16.7K) and Unemployment Rate (exp. 4.3%) released at 11:30am. A stronger-than-expected labor market reading could reinforce expectations that the RBA may keep rates elevated for longer. No other major economic news released out of Australia for the rest of the week.
USD
AUDUSD opens higher at 0.7153, rising throughout the day from yesterday’s lows of 0.7092 as hopes for a Middle-East deal increased, although skepticism still remains. President Trump stated that they had sent a peace proposal to Iran last night and negotiations were in the ‘final stage’ and that there would be more fighting to come unless Iran signs off on the deal. Yesterday saw the FOMC Meeting Minutes announced, which saw markets expect higher chances of a US Federal Bank interest rate hike later this year. Wall Street closed higher on the news, with the Dow Jones +1.3%, S&P 500 +1.1% and Nasdaq +1.5%. Tonight will have Philly Fed Manufacturing Index (exp. 17.6), Unemployment Claims (exp. 210K), Flash Manufacturing PMI (exp. 53.8) and Flash Services PMI (exp. 51.1). These figures will be monitored for early signs of how growth is performing in the month and the extent to which supply chain pressures have intensified.
EUR
AUDEUR opens higher at 0.6151, rising from yesterday’s lows of 0.6120 as risk sentiment improved overnight. No major European economic data out of the Eurozone yesterday, with equities recovering overnight; DAX +1.4% and CAC +1.7%. Tonight will have Flash PMIs released out of the Eurozone, with the general consensus being that the manufacturing sector has expanded while the services industry has shrunk.
GBP
AUDGBP opens higher at 0.5323 this morning following some mixed economic data out of the UK. Yesterday saw English CPI y/y release at 2.8% (lower than expectations of 3.0%), as well as Monetary Policy Report Hearings which stated that higher than expected inflation was a possibility for the year. British equities recovered last night, with the FTSE +1.0%. Tonight will have Flash Manufacturing PMI (exp. 52.9) and Flash Services PMI (exp. 51.7) released, as well as BoE Governor Bailey speaking at the Cutlers' Feast.
NZD
AUDNZD opens flat at 1.2185, trading sideways between 1.2163 and 1.2200 during the day. Early this morning the NZ Trade Balance released at +19020M (Forecasted at +980M). Later today Credit Card Spending y/y is set to release, previously at +2.1%.