Wobbles in Deustche Bank Shares over the Weekend
AUD
The Aussie dollar opens lower against the major currency pairs this morning with risk taking a bit of a knock late in the Friday session. Asian Equities closed lower with ASX -0.2%, Shanghai Comp -0.6% and the Nikkei -0.1%. Commodities also closed lower with Crude Oil -1.0%, Natural Gas -5.5%, Gold -1.1%, Iron Ore -1% and Silver being the outlier closing +0.3%.The local data on Friday had Flash Manufacturing & Services PMI’s both missing expectations and coming in contractionary (less than 50) which shows that purchasing managers' view of the local economy is continuing to sour. Looking ahead and a quiet start to the week today before things ramp up in the form of February Retail Sales tomorrow and then the main event of the week; CPI data (consumer inflation) on Wednesday.
USD
The AUDUSD pair saw a steep drop reaching lows of 0.6625 on Friday night before beginning to retrace in the early hours of Saturday to open this morning at 0.6654. US Equities closed higher with the Dow Jones +0.4%, S&P 500 +0.6%, and NASDAQ +0.3%. US Durable Goods Orders for February printed at -1.0%, up from -5.0% though short of expectations of +0.2% with the ex-transport measure also short of expectations. US Manufacturing PMI for March printed at 49.3 to beat estimates of 47.0 while Services PMI was 53.8 to beat estimates of 50.3. The combined results saw the Composite PMI rise to 53.3, beating estimates of 49.5. Fed’s Bullard hit the wires saying that he had raised his 2023 terminal rate projection to 5.625% on the back of stronger economic data and the assumption that stresses in the banking sector would abate. Nothing on the cards in the way of US Data today with the standouts for the week ahead being CB Consumer Confidence on Wednesday, Final GDP q/q and Unemployment Claims on Thursday and Core PCE Price Index m/m on Friday.
EUR
AUDEUR struggled to pick itself up off last week's one-year lows, managing a high of just 0.6194, and opening this morning slightly down at 0.6174. European Equities closed lower with both the DAX & CAC loosing 1.7%. European PMIs were released early in European trade, which showed Manufacturing data was worse than expected and contractionary, however Services numbers improving and remaining expansionary in Germany, France and the EZ as a whole. Deutsche became the latest bank to be plagued by financial stability concerns with the stock down as much as 14% and CDS rising significantly. A quieter night ahead with German ifo Business Climate, M3 Money Supply y/y and Private Loans y/y to be released.
GBP
The AUDGBP had a luck lustre end to the week, opening slightly down on Friday's open at 0.5428 this morning. UK equities closed lower with the FTSE -1.3%. The UK, Manufacturing PMI came in at 48.0 compared to forecasts of 49.7 while Services was 52.8 compared to forecasts of 53.0, leaving the Composite PMI at 52.2 against expectations of 52.7. The BOE’s Bailey also hit the wires claiming inflation is too high and must come down, and is likely to this summer. Bailey needs to see growth based on stable prices and the UK still needs measures to make growth sustainable. A slow day in data to start the week off with only CBI Realized Sales to look forward to today. Tomorrow we have BOE’s Governor Bailey speaking again, twice.
NZD
The AUDNZD opens slightly higher at $1.0709 this morning with no data to inspire price action. No data was released in NZ on Friday, no data today and no data to be released until Thursday’s Building Consents m/m and ANZ Business Confidence.