AUD Mixed After GDP Growth Softens

AUD

The Aussie dollar opens mixed against the majors this morning following yesterday’s GDP q/q printing below expectations of 0.5% to come in at 0.2%. This marked the slowest rate of expansion since Q3 2022, with household consumption exhibiting no growth, and Aussie exports experiencing a decline for the first time since Q1 2022. The ASX enjoyed the news, closing 1.7% higher, after its biggest one-day rally in more than a year with all sectors in positive territory. Asian equities were also higher with the Hang Seng adding 0.7% and the Nikkei rising 2%. Today, we have our Goods Trade Balance expected to increase to 7.75B from previous 6.79B.
 

USD

The AUDUSD opens slightly down this morning at 0.6550 after reaching 0.6590 highs overnight. Wall St opened with modest gains, though slipped over the US session to close back near flat on the day. The US ADP Non-farm Employment report showed another blow to the US labour market, with only 103k jobs added in November, down from a negatively revised 106k and below expectations of 130k. Next up for the US is their Unemployment Claims tonight, expected to increase to 221K from it’s previous 218K, continuing the theme of a weakening US labour market.
 

EUR

AUDEUR opens slightly higher at 0.6084 after a midday hike up to the 61 handle before dropping back down to the 60s in the evening. European markets generally moved a little higher to close out the EU session with both the DAX and the CAC up 0.7%. German Factory Orders m/m came in a lot weaker than expected at -3.7% versus it’s expected +0.2%. Europe Retail Sales m/m also came in slightly worse than expected to print at 0.1% versus expected 0.2%. Tonight, we will see a plethora of low impact Euro data coming out with the Final Employment change q/q and Revised GDP q/q being the ones to look out for.
 

GBP

AUDGBP opens higher today at 0.5214, following the trend of a post-Aussie GDP midday spike to a high of 0.52314. The FTSE closed out the British session up 0.3%. Last night, BOE Gov Bailey spoke about how the full impact of higher rates are yet to hit the UK and that UK borrowers must remain resilient to higher rates – it seems the chance of rates going down isn’t very likely in the near future for the UK. Tonight, they have the Halifax HPI m/m expected to decrease, though, this is unlikely to have much impact on the AUDGBP.
 

NZD

AUDNZD opens down today at 1.0671 following yesterday’s high of 1.0697. There was no news out for the Kiwi’s yesterday or and nothing coming out until tomorrow morning’s Manufacturing Sales q/q which previously printed at 0.2%, up from -2.5%.