AUDUSD Plumbs 10-Week Lows
AUD
The AUD continues the week lower against all the majors due to US election expectations and poor commodity performance. The worst performers were Crude Oil -5.4%, Natural Gas -2.9% and Wheat -1.7%. To equities, the ASX closed +0.1%, Shanghai Comp +0.7% and Nikkei +1.8%. No economic data for Australia has been released so far this week, however, Wednesday at 11:30am will see quarterly inflation data released (expected to be at 2.3% for the year). This will be the last key economic data release before the RBA’s rate decision next Tuesday, so it will be a consideration for their decision and associated commentary then.
USD
The AUDUSD opens lower this morning at 0.6581 with 10-week lows, regaining the 0.6600 handle overnight before falling back to current levels as markets demand the Greenback, de-risking ahead of the US Presidential election next week. The USD has strengthened this month due to increased demand stemming from global risk sentiment, chances of US tariffs and stronger than expected economic data. Wall Street is also hovering near all-time highs, with Dow Jones closing +0.6%, S&P 500 closing +0.3% and Nasdaq +0.3%. No economic data was released so far this week, but tonight will see S&P/CS Composite-20 HPI y/y, CB Consumer Confidence and JOLTS Job Openings released.
EUR
The AUDEUR opens at 0.6087 with 5-week lows, consistently dropping throughout the night before trading at current levels. A quiet week of data in the Eurozone so far, with the main reason for the drop being AUD weakness on the back of increased escalations in the Middle East. On equities, the DAX closed +0.3% and CAC +0.8%. Tonight will see the German GfK Consumer Climate, expected to improve from -21.2 to -20.4. Tomorrow will see monthly German inflation data released, expected to increase from 0% to +0.2% for the month. If they release as expected, it could point to a slight improvement in the German economy.
GBP
The AUDGBP opens lower at 0.5071 with 11-week lows. The CBI Realized Sales released higher than expected, indicating an increase in retail activity in the UK. In addition, the FTSE closed at +0.4%. There’s not much economic data releases this week for the British Pound, however the UK Government Autumn Forecast Statement is tentatively expected to be released tomorrow.
NZD
The AUDNZD opens lower this morning at 1.1005 after hitting highs of 1.1057. There’s been no news this week so far following their Labor Day yesterday. The next data release will be ANZ Business Confidence on Thursday. The confidence in the Kiwi economy by businesses has continued to surge following the recent surprise 50bps cut from the Reserve Bank of New Zealand. Markets are evening considering the chances of a 75bps cut by year-end.