Aussie Dollar Steady Ahead of Key Domestic Inflation Data

AUD

The Aussie Dollar opens flat against the major currencies ahead of today’s inflation report at 11:30am. Asian equities closed higher with the ASX +0.7%, Shanghai Comp +0.2% and Nikkei +0.5%. Commodities swung the other way, with the largest movers being Natural Gas -6.2%, Crude Oil -5.0% and Copper +1.6%. CPI m/m is expected to increase from last month’s reading of -0.1% to +0.9%. Additionally, our Trimmed Mean CPI m/m (the RBA’s preferred measure of inflation) is expected to increase from +0.3% to +0.4%. The RBA's latest meeting minutes were released yesterday and showed that the bank is focused on tackling inflation and were closer to raising rates than the unanimous vote suggested. Household Spending m/m and the RBA Bulletin will be out tomorrow.

USD

The AUDUSD opens slightly up at 0.7165, trading sideways between 0.7138 and 0.7169 over the past 24 hours. Wall Street closed higher due to improving risk sentiment, with the Dow Jones +0.3%, S&P 500 +0.3% and Nasdaq +0.7%. Last night, the CB Consumer Confidence released at 89.4, which missed expectations of 90.3. Tonight will see American Core PCE Price Index m/m (exp. +0.2%) and Prelim GDP q/q (exp +1.5%), which the US Federal Reserve traditionally views as important for their interest rate decisions. Looking ahead, the US Federal Reserve Chairman Warsh is due to have his first public speech as the Chairman at the Jackson Hole Symposium on Saturday.

EUR

The AUDEUR opens flat at a rate of 0.6136 this morning. European equities closed slightly higher, with the DAX +0.6% and the CAC -0.2%. The Eurozone has seen minimal data in August due to their summer shutdowns, however the Jackson Hole Symposium may finally see some Eurozone-related news over the weekend.

GBP

The AUDGBP opens flat at 0.5250, trading in a range of 0.5236 and 0.5252 over the past 24 hours. UK equites were higher on the close, with the FTSE +0.3%. CBI Realized Sales will be released later this evening and are currently forecasted at -35 from a previous -26.

NZD

The AUDNZD opens flat at a rate of 1.1988. No major data out of New Zealand for the rest of the week as focus now shifts to next Wednesday when the RBNZ will have their next rate decision.