AUD Rebounds on Sentiment Shift
AUD
The Aussie Dollar opens stronger against most majors, flat against the Euro, as global risk sentiment improved over the past 24h, seeing most global equity indices strengthen. The AUD was also influenced by a rebound in copper and iron ore prices, offering some relief from recent declines. Asian equities started the week mixed, Nikkei -1.1%, Shenzhen -0.5%, while the Hang Seng closed +0.8%. Locally the ASX ticked up slightly +0.2% as consumer staples and utilities found bids. Commodities closed stronger, with Crude Oil being the biggest mover at 3.1%. Natural Gas +1%, Gold and Silver both flat, Iron Ore +.2% and Copper +1.5%. Yesterday was a quite one with only RBA Assist Gov Kent speaking. The key highlight being, “RBA policy effect is no stronger than other economies”. Today we will receive the minutes of the RBA's November 5 meeting, providing insight into the reasoning behind the decision to hold the Cash Rate (again) at 4.35%.
USD
AUDUSD opens stronger this morning at 0.6504, having hit 0.6511 highs overnight, with the AUD strengthening on improved global risk sentiment. A relatively subdued session to start the week saw the Nasdaq trading +.6%, the S&P 500 +.4%, and the Dow Jones -.1%. Last night saw the NAHB housing Market index move higher as election uncertainty is lifted (46 from 43). Tonight, U.S. housing starts and building permits are projected to have remained stable in October. Severe weather during the month may have impacted construction activity in the southeast region. All eyes will be on their Unemployment Claims and their Flash PMIs at the end of the week.
EUR
AUDEUR opens relatively flat this morning at 0.6138 after hitting lows of 0.6111. it was a quite start to the week in terms of data out of Europe last night. ECB’s President Lagarde spoke this morning and did not refer to monetary policy. Equities, Dax and Cac both closed flat. Tonight, Final Core CPI and Final CPI are set to come out flat at 2.7% and 2.0%. Their main event this week will be on their Services and Manufacturing PMI’s out on Friday night.
GBP
AUDGBP opens stronger this morning at 0.5128 after hitting highs of 0.5136 overnight. It was a quiet start to week for the Pound. BoE’s Greene spoke and stakes “UK services inflation is elevated and on a downward path". The FTSE closed up last night at 0.6%. Tonight is another quiet day with only their Monetary Policy Report Hearings. Tomorrow will see their CPI y/y coming out. It is expected to rise to 2.2% from 1.7%. This week’s main event will be Flash Manufacturing and Service PMI’s out on Friday.
NZD
AUDNZD opens stronger at 1.1040 after hitting highs of 1.1054. There is not data out today for our friends across the ditch. Tomorrow, they have their GDT Price Index (previous was 4.8%) and Credit Card Spending y/y out on Thursday.