US Labour Market Starts to Quiver

AUD

The Aussie dollar opens mixed against majors with commodities following suit. Crude Oil up 0.8%, Natural Gas down -6.2%, Silver up 0.1%, Iron Ore down -1%, Copper down -0.6% and Gold remaining unchanged. The ASX fell -0.8% as financial stocks soured -1.5%, while Asian equities finished another session in the red as Korea tumbled -2.4% and Japan -2.3%. Later this morning Australia's Trade Balance release is expected to show an increase from last month's 8.04B to 8.62B, however, the print is unlikely to move markets. No China data coming out today due to the Bank Holiday this week.

USD

The AUDUSD is still feeling the effects of the RBA’s rate hold, however, due to weak US data overnight, the rate has opened slightly higher at 0.6325. In September, US companies added the fewest number of jobs since the beginning of 2021 according to figures published by the ADP Research Institute (89k against expectations of 154k), with the USD sold in the aftermath. The ISM Services PMI printed on-expectations at 53.6 after growth in the US services sector moderated in September as a measure of new orders slipped yearly lows. Wall Street closed in the red again with the Nasdaq down -1.9%, the S&P 500 -1.4%, and the Dow Jones -1.3%. Unemployment claims data set to be released overnight, expected to slightly increase from the previous month's release to 211k. Any miss can create volatility in FX markets.

EUR

The AUDEUR opens flat at 0.6020 while European equities fell with the DAX down -1.1% and CAC down -1%. Only low-tier pieces from the Eurozone today with the German Trade Balance, French Industrial Production m/m, and the Spanish and French 10-y Bond Auction. Overnight, we also have German Buba President Nagel speak about the key interest rates and monetary policy.

GBP

The AUDGBP opens slightly lower this morning at 0.5211 with FTSE closing -0.5%. Another quiet day for the pound with only the Construction PMI to be released at 7:30pm. The figure is expected to slightly decrease from 50.8 to 50 flat. The next major pieces of data will be UK GDP m/m next Thursday.

NZD

The AUDNZD opens higher this morning at 1.0696 following the RBNZ decision to hold the Official Cash Rate yesterday at 5.5%. The unexpectedly dovish statement indicated that rates may remain unchanged for the near-future until inflation has been dampened. No important data set to be released today apart from the ANZ Commodity Prices m/m at 11am.