Currency Update - Friday 14th June 2019
AUD
The AUD opens marginally lower this morning after testing support at 0.69 overnight. Inflation Expectations printed as expected yesterday and Unemployment crept up to 5.2% (5.1% exp) despite the economy ganing over 45,000 jobs. The AUD was softer on the mixed headline results, but recovered half of the losses before this mornings open. Another RBA rate cut is now expected in July, or August. Oil price recovered close to the full 4% of losses from Wednesday as trouble brews in the Middle East. Equity markets ignored the increasing geo-political tensions, European & U.S equities rallying once more, the ASX opens close to flat meanwhile. It's a quiet end to the week for the AUD, with no meaningful data set for release today, we will be exposed to a raft of Chinese data however mid morning. Resistance remains at 0.6950 & 0.70, support at 0.6980.
USD
The USD was marginally higher overnight, but importantly closed above 97.00 in index terms. Weekly Jobless Claims printed at 222k, marginally higher than 215k (exp). A Norwegian oil tanker was targeted in an attack in the Gulf Of Oman overnight, U.S Secretary of State Pompeo was quick to single our Iran as the aggressor. Iran has denied such claims. Risk assets ignored the flare up with equities closing in positive territory, Nasdaq and S&P with 0.5% gains. Tonight sees the release of Retail Sales, May IP and Uni of Michigan Sentiment Survey. All in all it has been a quiet week for currenies, volatility has been subdued. Data picks up again next week.
EUR
EZ Industrial Production for May printed as expected at -0.5%, AUD remains under pressure against the single currency, opening marginally lower at 0.6131 this morning. European equity markets closed higher in-line with global equities, the DAX up 0.4%, MIB closing 0.8% higher. French Final CPI is released this evening, that caps the data week, Eurodollar marginally off its highs at 1.2975 this morning on account of USD strength.
GBP
The AUD opens flat against the Pound at 0.5454. Boris Johnson is the clear favourite for the leadership of the Tory party, gaining four times as many votes than his closest competitor in the preliminary round of votes overnight. The Pound was unaffected against the big dollar for the most part and a quiet close to the week for currency pairs. The FTSE closed 0.4% higher.
NZD
The Kiwi continues to tread water in what has been a quiet week for movement. There's no data on the docket today, U.S data in focus tonight, especially Retail Sales, an important barometer on the state of the U.S economy. NZD/USD fell, opening at 0.6558 as the USD continues to strengthen from safehaven flows.
Today’s data
USD:
May IP, Uni of Michigan Sentiment, Retail Sales
CNY:
May Retail Sales, Industrial Investment, Fixed Assets