Aussie Dollar Dips Following Fresh Middle-East Hostilities

AUD

The Aussie Dollar opens lower across the major currencies following a major escalation in US-Iran hostilities. The US military has announced it launched a fresh series of strikes against Iran, a day after several tankers were attacked while passing through the Strait of Hormuz. Asian equities finished lower across the board yesterday with the Nikkei -2.1%, Shenzhen -1% and the Hang Seng -0.5%. Locally, the ASX 200 shed 0.3% as materials and real estate sectors underperformed at -2.6% and -1.4%. No data out yesterday or today and the rest of the week is looking light on the economic calendar, with the Aussie Dollar to be mostly affected by international factors. 

USD

AUDUSD opens in the red down thirty basis points from yesterday to open at 0.6925 as fresh hostilities in the Middle East revive risk aversion across currency markets. Another quieter offshore session with US equity markets heavier ( S&P500 down 0.45% and Nasdaq over 1.1% weaker ) and currencies subdued. Some US labour data released overnight and showed that the ADP Employment Change 4-week average eased to 21K from 24.25K, pointing to a softer pace of private hiring. The main focus for the US now shifts to tomorrow mornings FOMC meeting Minutes which will give more insight on how new Fed Chair Kevin Warsh intends to run the central bank.

EUR

AUDEUR opens flat within five basis points of yesterday’s open at 0.6072. European equities closed in the red with the DAX down -1.4% and the CAC down -0.5%. No major currency impacting European data out today or yesterday, with the main point of interest coming tomorrow when the ECB Monetary Policy Meeting Accounts releases.

GBP

AUDGBP opens the day flat at a rate of 0.5188. The FTSE closed slightly in the green at +0.1%. A very quiet week for the Pound with no data out that is economically or currency impacting for the rest of the week, with all eyes on next Thursdays GDP m/m data.

NZD

AUDNZD opens slightly in the red down roughly 10 points at 1.2197 this morning. The RBNZ are still set to hike interest rates at midday seeing a slight strengthening in their currency overnight, although economists are split on whether the RBNZ will hold rates steady or hike. Post decision and press conference there is no major Kiwi data for the week to come.