AUD Lifts After Surprisingly Hawkish RBA Minutes

AUD

The Aussie dollar opens higher against the majors after some hawkish comments by the RBA in their Monetary Policy Meeting Minutes yesterday. Notably, Members acknowledged upside risks to inflation were a ‘significant concern’. Asian equities on the other hand closed in the red after the Nikkei shed 2% trailed by China and Hong Kong’s 1% fall. Asian equities followed the strong Wall St. lead with the Hang Seng up +0.75%, Nikkei up +1.2% and the ASX 200 up +0.4%. To commodities, Iron Ore gained +0.6% while Gold and Silver gave up -0.1% and -0.3% respectively. This morning, RBA Governor Bullock noted we are yet to see the full impact of previous rate hikes. The major focus today will be China's Retail Sales y/y, GDP q/y and Industrial Production y/y.

USD

The AUDUSD opens higher this morning at 0.6366 off of the back of the RBA's hawkish commentary, even though US Retail Sales figures were stronger than expected overnight (the Core figure was 0.6%, expectations were 0.2%). A subdued session on Wall St saw the Nasdaq close -.3%, while the S&P 500 and the Dow Jones were both flat. No major news set for release today out the US, with only some minor data set to be released late this evening and overnight with Building Permits, and FOMC Member Waller speaking.

EUR

The AUDEUR opens higher this morning at 0.6018 after our Monetary Policy Meeting Minutes boosted the Aussie dollar yesterday. Yesterday's German ZEW Economic Sentiment came through better than expected at -1.1 from the projected -9.1. We saw a modest session for Eurozone equities with the DAX and CAC each up 0.1%. No major news set for release out the Eurozone today, with only the Italian Trade Balance, and Final Core CPI y/y and Final CPI y/y.

GBP

The AUDGBP has jumped overnight, opening at 0.5224 after the UK Average Earnings Index 3m/y came through less than forecast at 8.1%. The FTSE also saw a late surge closing up 0.6%. We have some major data set for release today at 5pm with the CPI y/y, and Core CPI y/y. A 0.3% month-over-month rise would allow the year-over-year rate to slip to 6.5% from 6.7%, being the slowest pace since February 2022. 

NZD

The AUDNZD opens higher this morning after a late rally at 1.0796. Looking towards the news we had the GDT Price Index come through early this morning at 4.3%, less than the previous month of 4.4%. No other news set for release today.