Aussie Dollar Stalls as US Strikes Continue

AUD

The Aussie Dollar opens flat against the majors following an empty week on the economic calendar and as the US launches its sixth consecutive night of strikes against Iran. Asian equities were mixed yesterday, with the Hang Seng +1.3%, Nikkei -2.8% and Shenzhen -1.9%. Locally the ASX 200 closed unchanged on the day. Some minor data out yesterday with Consumer Inflation Expectations, which declined to 4.7% from a previous 5.5%. The data suggest that concerns around inflation seem to be easing amongst consumers as it marked the lowest read since January this year. Looking ahead to next week, the main focus will be on Thursday with our local employment data.

USD

AUDUSD opens flat at 0.6997 as the greenback struggles to gain momentum following some mixed economic data overnight. US Retail Sales for June released in line with expectations at +0.2% MoM, the Philly Fed Manufacturing Index came in at +41.4 (est.+12.5), the best result for the Index since November 2021. US Unemployment Claims came in at 208K, below expectations of 217K and the previous 216K, showing some resilience in the US labour market. US stocks fell overnight with the Nasdaq -1.5%, S&P 500 –0.5% and the Dow –0.2% as a sell off in heavyweight chipmakers weighed on sentiment. Later this morning President Trump will be addressing the nation from the White House, the topic will be on election integrity. Prelim UoM Consumer Sentiment and Prelim UoM Inflation Expectations are set to release tonight to close out the week for the US.

EUR

AUDEUR opens flat at 0.6113 as geopolitical escalations have capped the pairs upside. European equities closed in the red with the DAX and CAC coming in at -0.3% and -0.1% respectively. The Eurozone Trade Balance data released yesterday at -5.0B, expected at 2.8B from a previous 0.8B. The deficit compared to last year is primarily driven by a wider energy deficit and smaller trade surpluses in machinery and vehicles, as well as chemicals and other related products. Later tonight, Final Core CPI y/y and Final CPI y/y are set for release to close out the week.

GBP

AUDGBP opens in the green at 0.5192 following some mixed economic data late yesterday afternoon. UK GDP m/m came in at +0.1% (exp 0.0%), Industrial Production m/m missed expectations of -0.1% to print at -0.5%. UK equities closed higher, with the FTSE up +0.5%. No data to end the week out of the UK, with the next key release coming next Tuesday which will see UK employment data released.

NZD

AUDNZD ends the week flat at a rate of 1.1977. Earlier this morning, FPI m/m released at 0.6% from a previous 1.0%, showing a slight easing in consumer food costs. Next major release for the Kiwi will be next Tuesday with CPI q/q inflation data.