AUD & Global PMIs Mixed
AUD
The Aussie Dollar opens this morning mixed across the board with both the US and Eurozone printing mixed data, leading to an inconsequential over night session for currencies. No significant data for the Aussie yesterday or today. Asian equities were stronger, led by the Nikkei and Hang Seng’s 2.2% and 1.6% gains. The ASX closed flat with Utilities the biggest mover, gaining 2.0%. Gold was flat, while Iron Ore gained +0.9%. Our next major piece of data will be CPI y/y next Wednesday morning.
USD
AUDUSD reached monthly highs of 0.6595 overnight despite multiple US data pieces landing in positive territory. We open today at 0.6559, being higher than yesterday morning. Unemployment Claims printed at 201k, Flash Manufacturing PMI 51.5 and Existing Home Sales coming in at 4.00M, all surpassing forecasts. The Flash Services PMI failed to reach expectation printing at 51.3, indicating that even with US manufacturing expanding at the fastest pace it has since 2022, the services sector is still behind. A strong session for US equities, with the NASDAQ closing +2.9%, S&P 500 +2.1% and the Dow Jones +1.1%. Before lunch today, FOMC Member Waller is set to speak about the current economic outlook, with the previous commentary stating the opinion that rate cuts can be executed at a more moderate and controlled rate than previously done. The US data next week will start with the CB Consumer Index which currently sits at 114.8, after previously beating the expectation of 114.2.
EUR
AUDEUR opens flat this morning at 0.6059 after mixed German and French PMI data led to a relatively tame overnight session. Eurozone Flash Manufacturing PMI fell short of expectations printing at 46.1, compared to the forecasted 47.0, with the Flash Services PMI surpassing expectation printing at 50.0, forecasted at 48.8. France saw the Flash Services and Flash Manufacturing PMIs both print higher than expectation respectively. German Flash Manufacturing PMI failed to reach expectation printing at 42.3 instead of the forecasted 46.1, whilst the German Flash Services PMI landed slightly above forecasted at 48.2, forecasted 48. European equities both ended in the green, with the DAX +1.1% and CAC 1.3%. Tonight, we will see the German ifo Business Climate print, being a leading indicator of economic health.
GBP
AUDGBP opens this morning lower at 0.5171 despite UK Flash PMIs printing flat & weaker than expected. Flash Manufacturing printed below expectations at 47.1, forecasted 47.5, Flash Services PMI printed 54.3, forecasted 54.2, seeing the service sector expanded for the fourth consecutive month, and at the fastest pace since May 2023. The FTSE traded mostly flat throughout the session, ending +0.3%. Later this morning, we'll see the low-tier GfK Consumer Confidence release.
NZD
AUDNZD furthers this week's downward trend to open today at 1.0588. This morning's NZ Retail Sales q/q printed at -1.9%, forecasted -0.2%. NZ Core Retail Sales q/q also missed expectation at -1.7% compared to the forecasted -0.1%. Next week we will see the NZ Reserve Bank's interest rate decision and Monetary Policy release. Markets expect the central bank to hold the Overnight Cash Rate at 5.5%.