USD Recovers After Strong GDP Print
AUD
The Aussie dollar opens in the red across the majors this morning after our CPI y/y came out weaker than expected at 4.9%, with the main upward contributors being housing and food prices. Asian equities came in mixed with the Shanghai Comp down -0.6%, Nikkei down -0.3%, and the ASX up +0.3%. Commodities were also mixed with Crude Oil +1.9%, Natural Gas -5.6%, Gold +0.1%, Iron Ore -0.7%, and Silver flat. Today's focus will be Chinese Manufacturing and Non-Manufacturing PMIs. Both pieces are expected to come out slightly stronger than the previous month with Manufacturing PMI expected at 49.8 and Non-Manufacturing PMI expected at 50.9. Not much news out of Aussie today with only a few pieces of low-tier data regarding Building Approvals, Capital Expenditure and Credit Issues in the private sector to be released.
USD
The AUDUSD still holds the 0.66 handle but opens lower this morning at 0.6617 due to the US Prelim GDP q/q pieces coming out stronger than expected from increases in consumer and government spending, fixed investments, imports and exports. Wall Street edged higher overnight with the Dow Jones +0.3%, the S&P 500 +0.2%, and the Nasdaq +0.1%. Another busy night in the US with multiple pieces of data set to be released. All eyes will be on the Core PCE Price Index m/m (the Fed's preferred measure of inflation) which is expected to come out slightly lower than the previous month at 0.2%. Unemployment Claims are expected at 219k following the previous 209k reading.
EUR
The AUDEUR opens slightly lower this morning at 0.6031 despite the missed German Prelim CPI m/m and Spanish Flash CPI y/y, both pieces having drops of -0.3% and -0.4% respectively. European equities came in strong with the DAX up +1.1% and CAC up +0.2%. A lot of low-tier data out of the Eurozone tonight, with the main pieces to look out for being Core CPI Flash Estimate y/y and CPI Flash Estimate y/y. Core CPI is expected to decrease from 4.2% to 3.9% and CPI from 2.9% to 2.7% respectively. Later tonight at 12:30am we also have ECB President Lagarde Speak about the ECB Forum on Banking Supervision.
GBP
The AUDGBP saw a gradual decline overnight from some low-tier data coming out stronger than expected, opening lower this morning at 0.5209. UK equities closed in the red with the FTSE -0.4%. Very quiet day ahead in the UK with regards to data, with the only MPC Member Greene Speaking at Leeds University.
NZD
The AUDNZD faced a massive drop in the aftermath of yesterday's RBNZ interest rate hold at 5.5%, with the rate opening today at 1.0752. Hawkish RBNZ commentary stated “inflation remains too high” after holding their cash rate at 5.50% aiming to bring inflation back within the 2-3% target range. At 8:45am this morning they had Building Consents m/m come out strong at 8.7% in comparison to last months -4.6%. A quiet day ahead for the NZ with only their ANZ Business Confidence being released at 11am.