Marginally Improved China Data Supportive of AUD

AUD

The Aussie dollar starts the week off largely up against the majors with the exception of our Kiwi neighbours. Commodities on the other hand came in mixed with Copper down 1.2%, Iron Ore up 0.4%, Silver down 0.2% and Gold flat. Asian equities were red into the close with the Nikkei down 1.2%, Hang Seng down 1.3%, while the ASX slid 0.2% as Materials was once again the biggest loser down 1.0%. Over the weekend we saw China’s consumer prices return to positive territory as the consumer price index (CPI) rise 0.1% in August, although less than forecasted with the median estimate being a 0.2% increase in a Reuters poll. The producer price index (PPI) however fell 3.0 per cent from a year earlier, in line with expectations, after a drop of 4.4 per cent in July, with the data showing China's exports and imports both narrowing their declines, joining a run of other indicators showing a possible stabilisation in the economic downturn, as policymakers seek to spur demand and fend off deflation. No data set to be released today for the Aussie however we will have a busy week with our Unemployment rate set to be released on Thursday, and China's Industrial Production y/y on Friday.

USD

The AUDUSD opens slightly higher after a slow rally over the weekend to start of the week at 0.6392. The Greenback continues to show strength, illustrated by the DXY trading comfortably either side of the 105 handle and a relatively quiet night on Wall St. saw the Dow Jones close up 0.2%, while the S&P 500 and the Nasdaq both gained 0.1%. A quiet day today for data releases out the US today, with nothing set to be released, however looking to the week ahead we have CPI data set to be released on Wednesday night, while PPI, Retail Sales, and Unemployment Claims will be set to be released on Thursday Night.

EUR

The AUDEUR pair saw a drop over the weekend, before rebalancing early this morning opening slightly higher at 0.5967. European markets closed higher on the day with the CAC up 0.6% ( energy stocks driving higher) while the Dax underperformed to gain just 0.1% on the day. No Eurozone news over the weekend, however today we have some minor data with the Italian Industrial Production m/m set to be released later this evening. All eyes however will be tuned in for the ECB's interest rate decision, Monetary Policy Statement, and Press Conference set to be released this Thursday evening.

GBP

The AUDGBP opens largely flat this morning up around 8 pips at 0.5119, after Friday's late slump was reversed by a strong start early this morning. The FTSE climbed late closing up at 0.5% in what was a session devoid of economic data from the UK. Looking at the news ahead, we have MPC Member Pill Speaking later this evening, however all eyes will be on the Claimant Count Change, and Average Earnings Index 3m/y set to be released tomorrow, and GDP m/m set to be released on Wednesday.

NZD

The AUDNZD saw a slight slump over the weekend before rallying this morning, opening slightly down at 1.0845. No news for our Kiwi neighbours today, however tomorrow morning with have the Visitor Arrivals m/m, and FPI m/m set to be released on Wednesday Morning.