Aussie Dollar Dips as US-Iran Trade Strikes
AUD
The Aussie Dollar drops off slightly over the weekend after Iran and the United States traded strikes over the weekend, endangering a truce to reopen the Strait of Hormuz. Asian equities were mixed into the close, with the ASX up 0.2% and the SHANGHAI COMP down 2.3%. On Sunday RBA Gov Michelle Bullock spoke on a panel about the future of currency, not giving any tells that markets could interpret. Looking onward we have RBA Assist Gov Kent Speaking now, and on Tuesday is the Monetary Policy meeting minutes; which might show if the RBA is considering any further hikes this year. A light data calendar to start the week, with all eyes on reaction to the military actions in the Middle East over the weekend.
USD
AUDUSD keeps stable over the weekend to open this morning at a rate of 0.6896, despite Iran and the US exchanging attacks on military infrastructure and Tehran threatening a “complete halt” to talks if strikes continue. Wallstreet was soft into the close, with the DOW JONES down 0.1%, NASDAQ down 0.2% and the S&P 500 flat. On Friday night the University of Michigan Sentiment Survey for June came in at 49.5 from a previous 48.9, though this was short of expectations of 50.0. Inflation expectations were unchanged for both 1 year and 5-10 year. Looking forward, it is a quiet start to the week, with Fed Chair Warsh speaking on Wednesday night with markets looking to gather what bias they can from his commentary.
EUR
The AUDEUR slips to open the week, with the pair drifting all weekend, opening this morning at a rate of 0.6055. European stocks were red into the close, with the DAX down -1.3% and CAC down -0.6%. It was a quiet end to the week data-wise for the Europeans, and looking ahead it looks to be another quiet one with Wednesday’s CPI estimates y/y being the main focus. Tonight ECB President Lagarde is set to deliver opening remarks at the ECB Forum on Central Banking, in Sintra.
GBP
The AUDGBP has an eventful weekend, with the pair keeping within a tight range all weekend, opening this morning at a rate of 0.5226. British equities sagged into the close, with the FTSE down -0.2%. It was an economic-free Friday for the UK, with this week being a quiet one too, BOE Gov Bailey speaking on Wednesday night will be what to lookout for.
NZD
The AUDNZD keeps flat over the weekend, with the pair keeping just above the 1.22 handle opening this morning at a rate of 1.2225. There was no data out on Friday and nothing tonight, with ANZ Business Confidence coming out on Tuesday 11am.