Aussie Dollar Gains on Improved Risk Sentiment
AUD
The Aussie Dollar sees gains against the majors as progress on a US-Iranian deal improved global risk sentiment, which has helped the Aussie recover from a setback last week when a soft set of jobs data was taken as lessening the chance of a near-term hike in interest rates. Asian equities were green into the close, with the ASX up +0.4% and the Shanghai Comp up +1%. Commodities were mixed, with Oil down -6.5%, Natural Gas down -1.9%, Gold up +1.4% and Iron Ore down -0.3%. Locally, no data was released yesterday or is scheduled for today, with Wednesday being inflation day for Australia with current forecasts expecting inflation to slow. Later this afternoon Japanese Core CPI y/y inflation data is set to release and is currently expected at +1.7%.
USD
The AUDUSD opens the day higher, with the pair slowly climbing yesterday to open this morning at a rate of 0.7173. A quiet start to the week for the US as Wallstreet was closed yesterday due to a bank holiday and no economic data was released. The Trump administration looks close to forming a peace deal with Iran, with markets speculating that there is an imminent opening of the straight. It was reported that Iran was seeking guarantees from China before completing a deal with the US and that they would only transfer uranium to China. The U.S. blockade on Iranian ships in the Strait of Hormuz would "remain in full force and effect until an agreement is reached, certified, and signed. U.S. Consumer Confidence for May will be released tonight with consensus expecting a slight moderation to 92.5 from April's reading. This release will be monitored for signs of how the consumer's spirits are holding up in the face of continued elevated gas prices.
EUR
The AUDEUR opens the day high with the pair grinding higher, hitting a weekly high overnight to open this morning at a rate of 0.6162. European stocks were green into the close, with the DAX up +2% and the CAC up +1.8%. It was a quiet start to the week with no news out, and none set to be released today. The ECB Financial Stability Review will be released Wednesday night, which will be the next important piece of data for the eurozone.
GBP
The AUDGBP opens the day flat, with the pair keeping remarkably stable over the past 24 hours, opening this morning at a rate of 0.5313. British equities were closed with their national holiday on Monday, leaving economic data also dry. Earlier this morning saw the BRC Shop Price Index y/y read higher at 1.2%, expected at 1.1% from 1.0%. Tonight will see CBI Realised Sales, expected to raise to -52 from -68.
NZD
The AUDNZD opens the day higher, with the pair seeing steady gains yesterday, opening this morning at a rate of 1.2221. There was no data out yesterday or today, with all eyes on Wednesday’s RBNZ’s Rate Decision, with markets currently expecting the RBNZ to hold rates steady at 2.25%.