US Shrugs Off Inflation
AUD
The AUD opens mixed against the majors this morning after weaker Chinese manufacturing data yesterday. Activity in China’s manufacturing and services sector shrank for the second consecutive month, with the Manufacturing PMI contracting to 49.4, adding to expectations of additional governmental support for their economic recovery. On their non-manufacturing side, the Non-Manufacturing PMI unexpectedly eased to 50.2, showing only slight expansion against its expected 50.9. Despite this, Asian equities closed in positive with Shanghai Comp +0.3% and Nikkei +0.5%. The ASX followed the trend with a close positive by 0.7%. Commodities were mixed with Gold closing -0.1%, Silver +0.2%, Iron Ore -0.3%, Natural Gas +1.4% and Crude Oil -2.3%. Today, there may be a tentative release of Chinese New Loans data, depending on the People's Bank of China’s schedule, indicating consumer and business confidence in their future financial positions. We'll also see China's Caixin Manufacturing PM today, while the main event next week will be the RBA's interest rate decision on Tuesday afternoon.
USD
The AUDUSD opens lower this morning at 0.6606 despite the US PCE Price Index printing at 3.0%, being the smallest year-on-year gain since March 2021, taking further pressure off the Fed to make another quarter-point interest rate hike before the year is out. The Core PCE figure printed on-expectations at +0.2% m/m. Chicago PMI showed much stronger expansion than expected, coming in hot at 55.8 against the expected 46.0 contraction. Its impact was lessened by cooling Jobs Market data, showing Unemployment Claims rosing to 218K from last week’s 211K. US Equities closed mixed with NASDAQ -0.8%, S&P500 +0.0% and Dow Jones +0.9%. Overnight, the ISM Manufacturing data will be released, expected to follow on its previous trend of contracting, but at a slower rate. Upcoming next week, we have ISM Services PMI and Jobs Openings to be released next Wednesday.
EUR
The AUDEUR opens higher at 0.6067, having traded as high as 0.6080 overnight off the back of weaker than expected inflation data in the Eurozone. Core CPI Flash Estimate m/m came in -0.4% lower than expected, and CPI Flash Estimate y/y came in -0.3% lower than expected, whilst also being lower than previous month’s release. Eurozone Equities came in strong, with the DAX pushing +0.3% and the CAC +0.6%. Tonight, we have a flurry of Manufacturing data coming out between 7-8pm, from Germany, France, Italy and Spain. All expected to hold steady from last month.
GBP
Following Europe’s trend, the AUDGBP opens higher this morning at 0.5230 while the FTSE was on trend with Eurozone Equities, closing up +0.4% too. Consumer Inflation Expectations to come in tonight, following the previous month’s expectations of 3.6%. No more data to come out until next week, where Claimant Count Change and GDP m/m will be released Tuesday and Wednesday respectively.
NZD
The AUDNZD opened lower this morning at 1.0735 following the release of better-than-expected Construction and Business Sentiment Data. Building Consents m/m released much better than previous at 8.7%, adding 13.3% to last month, whilst ANZ Business Confidence increased 7.4 points to 30.8. No more data to be released until next week, where Overseas Trade Index q/q will be released Monday morning.