Risk Aversion Remaining Subdued Despite Skyrocketing Case Numbers

AUD

Another quiet day for the Aussie dollar today with a continued lack of liquidity in markets with no local data being released. The ASX closed up 1.2% but was the only one of its peers in Asia to do so with both the Shanghai Comp and NIKKEI closing down 0.9% & 0.6% respectively. There was also mixed movement in commodities with Iron Ore up 2.3% whilst Copper closed down 0.5%. Despite skyrocketing local Covid cases, the AUD is holding up pretty well in what is strangely a general calming of risk sentiment, evidenced by the VIX closing down 1.9%. No data on the docket for today.

USD

AUDUSD is trading in smaller ranges again, settling comfortably at 0.7248 this morning after reaching 0.7270 at the peak last night. This comes after mixed data coming out of the US with the Goods Trade Balance printing -97.8B, which was a much greater deficit than the expected -89B. November Wholesale Inventories rising 1.2% MoM, down from 2.3% last month and below expectations of 1.5%. November Pending Home Sales saw a decline by 2.2%, well short of expectations of a 0.8% increase. Little movement in US equities with both the Dow and S&P 500 closing up 0.3% & 0.1%. Looking ahead and tonight unemployment claims are expected to rise by 205K claims in what should be a quiet night.

EUR

AUDEUR trading flat and opening this morning at 0.6393.  A few data releases out of Europe overnight with the yearly Money Supply of Euros in circulation down 7.3%, 0.3% lower than forecasted. The change in the total value of new loans issued to consumers and businesses in the private sector was in line with expectations at 4.2%. Markets were unmoved. Looking to equities, European markets closed lower with both the DAX & CAC closing down 0.7% & 0.3%. Looking ahead there is little data save for the Swiss economic barometer which will provide indication of the economic outlook of the country going into the New Year and annual Spanish CPI data tonight.

GBP

AUDGBP also seeing little movement with the pair opening at 0.5376 this morning. There was no data of note coming out of the UK. The FTSE outperforming its peers in Europe to gain 0.7% as it played catch up after being closed for the start of the week. Looking ahead markets await the monthly Nationwide Housing Price Index figures which will provide insight into housing inflation in the United Kingdom.

NZD

AUDNZD lost its overnight momentum and opened at 1.061 this morning. With no data, the pair may trade quietly going into the New Year.