RBA Meeting Minutes to Provide Insight
AUD
The Aussie dollar opens mildly flat against majors this morning with regards to minimal data pieces coming out overnight. We saw some growth in Asian equities with Shanghai Comp closing at +0.3% and Nikkei at +1.1%, in contrary, the ASX closed at -0.7%. Over to commodities, Crude Oil gained +1.4% alongside Gold +0.5% and Silver +0.9%, while Natural Gas fell -5.0%. A quiet week ahead in terms of AUD data apart from today’s Monetary Policy Meeting Minutes which may create some volatility in the market depending on hawkish/dovish undertones. At RBA Governor Lowe's final meeting, he noted that 'inflation has passed its peak' but is 'still too high and will remain so for some time yet', as he kept the door open to further potential hikes. We are also waiting for China’s 1 and 5 year Loan Prime Rates to be released tomorrow which are expected to remain unchanged at 3.45% and 4.20% respectively, however, any results that miss expectations may create volatility with the Aussie dollar.
USD
The AUDUSD opens flat at 0.6437 with little low-tier data released overnight that did not shift the market much. A quiet night on Wall Street ahead of some key Central Bank decisions later in the week, with the Dow Jones, NASDAQ and S&P 500 all closing flat. A few pieces of data set to be released this week with Building Permits data tonight, expected to remain unchanged at 1.44M, until the Fed's interest rate decision on Thursday morning, including FOMC Economic Projections, Statement, and Press Conference.
EUR
The AUDEUR opens slight lower at 0.6020, holding onto the 0.60 handle, while equities lost ground with the DAX down -1.0% and CAC down -1.4%. A quiet week ahead for EUR data with only a couple of low-tier data pieces being released until Friday's Flash Manufacturing & Services PMIs.
GBP
The AUDGBP has opened relatively flat at 0.5199 after testing the 0.52 resistance handle overnight. British equities saw a loss with the FTSE closing -0.8%. Busy week ahead for the Brits with multiple data pieces being released. Multiple CPI and PPI events to occur with the main piece being CPI y/y which is expected to slightly increase at 7.0% from previous of 6.8%. We also have their central bank's Official Bank Rate being determined on Thursday night followed by the Monetary Policy Summary. If the CPI report is notably different from expectations, it could shake up current projections of a 25bps hike from the BoE (which would take the rate to 5.5%)
NZD
THE AUDNZD has lost the 1.09 handle, opening at 1.0872 this morning. No further data set to be released until Thursday morning with the NZ GDP q/q. The Kiwi economy is expected to have grown by +0.4% in the quarter after last quarter's -0.1% contraction.