Central Bank Jostling Continues, BoE Up Tonight

AUD

The AUD continued to slowly make back some lost ground from last week. US Equities didn’t move much overnight with US 10 year yields moving slightly higher by 2.5 bps. Asian Equities had a rather quiet session, with the ASX losing -0.6%, which didn’t aid the AUD in its attempt to reclaim some lost ground. Commodities had a mixed overnight session with Iron Ore down -0.5% and Copper seeing strong gains of 2.3%. Due to being heavily correlated to commodity price movements, any gains north in commodities could be a saviour for the AUD. With Sydney facing the high possibility of a lock down, Investor sentiment could crumble fast, the AUD commonly thrives in a market with positive risk sentiment, as such this could have also aided the AUD. No significant local data scheduled to be released for the end of the week, with market movements likely to come from any foreign news or statistics.

USD

The AUD/USD made some slight gains last night, currently trading at a rate of 0.7576 at time of writing. US Equities were fairly flat overnight, with the S&P500 down -0.1% and the NASDAQ gaining 0.1%. The USD had some rather disappointing PMI data, with Services PMI coming in well below expectations at 64.8 (vs exp 70.0), and the Manufacturing PMI coming in slightly better than expected at 62.6 (61.5). Overall the rather weak data most likely released some pressure off the AUD. The USD looking at another busy night ahead, with Final Quarterly GDP and unemployment claims scheduled to be released, results worse than markets expectations could lend a helping hand to the AUD.

EUR

The AUD/EUR had a strong overnight session, not trading too far of last week's levels, currently coming in at a rate of 0.6350 at time of writing. Europe had some mixed PMI data released early last night with French Manufacturing and Services PMI coming in at 58.6 (vs exp 59.0) and 57.4 (vs exp 59.6). While German manufacturing  and services PMI beat expectations at 64.9 (vs exp 64.0) and 58.1 (vs exp 55.8) respectively. The data didn’t seem to aid the EUR, as the AUD continued to make gains throughout the night. The EUR looking at a quieter finish to the week, with just some German ifo Business Climate statistics scheduled in for later tonight.

GBP

The AUD/GBP also made some modest gains, currently trading in at a rate of 0.5424 at time of writing. The UK released PMI data overnight, with the Services PMI being the only noteworthy statistic coming in at 61.7 (vs exp 62.9). The UK also has a busy day ahead, with the official Bank rate, Monetary Policy and Asset Purchase facility Decision all scheduled to be released later tonight. The UK is unlikely to easy their QE program or change any Asset Purchases, however as seen from the FED meeting last week, anything that is wildly different from expectations could move markets. 

NZD

The AUD/NZD trading slightly lower than yesterdays levels, currently trading in at a rate of 1.07534 at time of writing. New Zealand has paused its travel bubble with NSW, as Sydney faces the threat of lock down. No real significant data scheduled for release, with just some Trade Balance Numbers scheduled to be released tomorrow.