US JOLTs Job Openings to Spur Further Hikes?
AUD
The Aussie dollar found marginal gains across the majors, opening slightly higher this morning, with metals delivering mixed results. Silver was down 0.2%, Gold unchanged and Iron Ore and Copper up 0.4%. Asian Equities had a strong close with the ASX up 0.6% and Shanghai Comp up 1.1%. Aussie Retail Sales m/m came in higher at 0.5%, with expectations at 0.2% and previously at -0.8%. Tonight, we have RBA Gov-Designate Bullock Speaking, as she will be replacing Philip Lowe as the new Governor next month, her speech will be important for setting the tone for how she will tackle current inflationary pressures.
USD
The AUDUSD pair opens slightly higher today at 0.6433 after falling yesterday afternoon to flirt with the 64 handle. Wall St remained in positive territory into the close with the Nasdaq up 1%, the S&P 500 up 0.8%, and the Dow Jones up 0.7%. No news from the States yesterday, while tonight we'll see important Consumer Confidence and JOLTS Job Openings metrics. On Friday, Fed Chair Powell opened the door to further interest rate hikes, with improved consumer confidence and steady job openings expected to support a more hawkish Fed policy outlook. Prolonged tight labour market conditions fuel consumer confidence, which drives consumption and demand-driven inflation. As always, volatility is likely surrounding the jobs data release.
EUR
The AUDEUR opens slightly higher this morning, with an afternoon slide quickly followed by a retracement to this morning’s open at 0.5940. Eurozone equities closed in the green, with the DAX closing up 1% and the CAC up 1.3%. Quiet on the data front yesterday, with the most important being Private Loans y/y, which came in lower at 1.3%, with expectations at 1.6% and previously 1.7%. Tonight will be a quiet night for data, with EU Economic Forecasts being released, giving economic forecasts for the EU member states for the next 2 years. Tomorrow, German Preliminary CPI y/y is expected unchanged at +0.3%.
GBP
AUDGBP traded within a 15-pip range over the past 24h, opening slightly up from yesterday morning at 0.5101, while equities had a day off given the UK bank holiday. Today, we have the British Retail Consortium Shop Price Index y/y (change in the price of goods purchased at BRC-member retail stores), while on Thursday afternoon MPC Member Pill is due to speak at the South African Central Bank’s conference in Cape Town. Overall, a quiet week for the pound.
NZD
AUDNZD has gained 30 pips from yesterday’s lows to open at 1-month highs of 1.0882. The only two pieces from the Kiwis this week will be Building Consents m/m and ANZ Business Confidence data. Neither of which typically move markets.