Aussie Dollar Gains as Employment Data Looms

AUD

The Aussie Dollar opens in the green across the majors this morning, although rising geopolitical risks and US Dollar demand continue to restrict the Aussie Dollar's upside. Asian equities closed mixed yesterday with the Hang Seng +2.4%, Shenzhen +1.5%, while the Nikkei was closed for the Japanese Mountain Day Public Holiday. Locally the ASX 200 closed -0.1% as technology and utilities sectors led losses of -1.5% and -0.6%. Another quiet start to the week for Aussie in terms of economic data, with no releases yesterday or expected today. In Asia, the People’s Bank of China left its benchmark lending rates unchanged yesterday for the fourteenth month straight. Chinese Foreign Direct Investment ytd/y is also tentative to release today after previously being down -8.6%. All eyes will now be fixed on Thursdays employment data, with Employment Change set to grow 16.4k and the Unemployment Rate to remain unchanged at 4.4%.

USD

AUDUSD opens higher this morning, briefly climbing past the .70 handle yesterday and retracing overnight to open at 0.6994. The US launched more strikes against Iran, hours after President Donald Trump warned that Tehran would pay for the deaths of three service members over the past few days. This now makes it the tenth consecutive night of attacks on Iran, targeting missile and drone sites as well as other military facilities. A relatively subdued session overnight saw the Dow Jones close -.5%, the S&P 500 -.1%, and the Nasdaq unchanged on the day. U.S. 10-year yields rose 4bps to 4.59%, while Brent Crude rose 1% to $89 a barrel. CB Leading Index m/m printed overnight, down -0.2% (exp -0.1%) from a previous +0.1%. A quiet week for the US economic data wise, as markets shift their attention to next Thursdays Cash Rate Decision for the US.

EUR

AUDEUR opens in the green at 0.6129, hovering around a 5 week high. European equites closed mixed with the DAX up +0.1% and the CAC flat at 0.0%. This evening, some minor economic surveys out of Europe with the ZEW Economic Sentiment and German ZEW Economic Sentiment, currently forecasted at 11.2 and 15.1 respectively .German Buba President Nagel will also be speaking at a meeting of European ambassadors, in Frankfurt. Next focal point for the Euro will be this Thursday interest rate decision which is largely expected to remain unchanged.

GBP

AUDGBP opens up this morning, breaking through the 52 barrier to open at 0.5210. The FTSE closed in the red, down -0.7%. This afternoon, Claimant Count Change is set to print out of the UK, expected at 29.4K from a previous 31.2k. Tomorrow, UK CPI y/y prints, expected lower than the last reading at 2.7% from 2.8% 

NZD

AUDNZD opens slightly up at 1.1964 after Kiwi inflation data printed early this morning and outperformed at 1.5% from an expected 1.4%. Some minor data expected tomorrow with GDT Price Index and NZ Credit Card Spending y/y set for release.