RBA Minutes to Spotlight Recent Hike

AUD

The Aussie dollar opens in the green across most majors this morning while the ASX finished yesterday's sessions 0.1% higher with energy stocks outperforming. Asian equities began the week mixed with the Shanghai Comp up 0.5% and the Nikkei down -0.6%. Yesterday, we had China's 1-year and 5-year Loan Prime Rates announcement which held at 3.45% and 4.2% respectively. At 10am this morning we have RBA Governor Michelle Bullock speaking at the ASIC Annual Forum in Melbourne. Then, at 11:30am we have the minutes from the RBA's most recent board meeting. Few economists were surprised by the 25bps interest rate hike at the beginning of the month after strong inflation data, with the RBA keeping the door open to further increases if deemed necessary. Today's report will shed further light on the most recent decision.

USD

AUDUSD remains at 3-months highs, holding onto yesterday's gains to open today at 0.6559. Wall St. saw a strong session yesterday with the Nasdaq up 1.2%, S&P 500 up 0.8% and the Dow Jones up 0.7%. A quiet week ahead for the USD with no major data out until Thursday where we have Unemployment Claims and Revised UoM Consumer Sentiment - both to be printed in the early hours of the morning.

EUR

AUDEUR opens higher at 0.5995, creeping back toward the 0.60 handle. European equities finished yesterday's session mixed with the DAX slightly down at 0.1% and the CAC slightly up at 0.2%. This morning, the ECB's Wunsch made some comments on the central bank's interest rate outlook stating that interest rates should hold for the remainder of this year and into early 2024. However, Wunsch agreed a further rate hike could be reasonable should investor bets on interest rate cuts strengthen against the policy. A quiet week ahead for the Eurozone until Thursday where we have French, German, and Eurozone Manufacturing and Services PMIs.

GBP

AUDGBP opens in the green this morning at 0.5246 with the FTSE closing yesterday's session slightly in the red at -0.1%. This morning we had the BOE Governor Bailey warn that the central bank may have to raise interest rates and that energy and food costs remain a risk to inflation. Bailey stated that policy makers are currently on watch for indicators of persistent inflation that could require an interest rate hike. This evening, we have the BOE's Monetary Policy Report Hearings. 

NZD

AUDNZD opens lower this morning at 1.0860, dipping slightly following the Trade Balance announcement which missed expectations. A quiet week ahead for the NZD with bits and pieces of low to mid-tier data to be printed throughout the week. However, on Wednesday next week we have the RNZ's Official Cash Rate with commentary following shortly after.