Tomorrow: Chinese CPI and PPI
AUD
The Aussie dollar opens mixed against majors, joined by mixed performance from metals with Gold up 0.1%, Silver up 0.2%, Iron Ore down -0.9% and Copper down -0.5%. Asian equities were red into the close with the ASX down -1.2% and the Shanghai Comp down -1.1%. Looking to the news, the Aussie Trade Balance came in under expectations, reading 8.04B, with a previous 10.27B and was expected at 10.05B. The Chinese Trade Balance also read lower at 488B, previously at 576B and was expected at 541B. No movement among currencies in the aftermath of RBA Governor Lowe's closing remarks at the Anika Foundation in Sydney yesterday. Today there is no data being released, with all eyes on tomorrow's Chinese CPI y/y, expecting to read 0.2% up from -0.3%, and PPI y/y expecting -3% from a previous -4.4%. Over the past few weeks China has taken several measures to help boost the economy, from easing overseas travel restrictions to modest cuts to lending rates. Given the amount of risk-premium currently priced into the Aussie dollar, when we see a positive turn in China, the AUD will likely follow.
USD
The AUDUSD opens slightly lower this morning after an unremarkable trading day, trading within a tight range to open at 0.6374. Wall St was mixed into the close with the NASDAQ down -0.9%, the S&P 500 down -0.4%, and the Dow Jones up 0.2%. US Unemployment Claims were released last night, printing below expectations at 216k (the lowest level since February), serving as a reminder that while labour markets are still cooling, they remain tight. Fed Harker Spoke last night, but did not comment on the economy or monetary policy, leaving markets unchanged. There isn’t any market moving data for the rest of the week, with the next coming out on Wednesday being US inflation data, no forecasts as of yet.
EUR
The AUDEUR pair saw a light slump yesterday morning, followed by a 0.72% rally late into the afternoon, following by a light retracement to this morning’s open of 0.5960. No fireworks from European equities with the DAX down -0.1% and CAC closing flat at 0%. There was a slew of low tier data released from the eurozone yesterday, with the majority coming in under expectations, the most notable being the Revised GDP q/q reading 0.1%, with forecasts the same as last reading at 0.3%. This data shows a weakening economy in the eurozone, lowering the chance of a rate hike, next Thursday. The low tier data continues today, with German Final CPI m/m coming out this afternoon, expected to stay the same at 0.3%.
GBP
The AUDGBP opens flat this morning, briefly ducking below the 0.51 barrier in the early hours before regaining it to open at 0.5112. The FTSE furthered recent gains, closing up 0.2%. Yesterday, we had the Halifax HPI m/m, coming in lower at -1.9%, forecasted at -0.1% and previously at -0.4%; this light miss did not seem to impact the market. There is no further data to be released from the UK this week.
NZD
The AUDNZD saw a light slump over the past 24 hours, sitting on the 1.084 resistance several times before ticking up to this morning's open at 1.0852. Quiet on the data front, with the next important piece due on the 21st of September, being the GDP q/q; no forecasts as of yet for the result.