Important US GDP Data Tonight
AUD
The Aussie Dollar opens largely flat against the majors this morning with minimal economic data released overnight. This comes after yesterday’s inflation report undershot expectations in February, coming in at 3.4% (in line with the previous reading), from the forecasted 3.5%. The latest figure also remains at the lowest level since November 2021, with the RBA likely wanting to see further slowdown in price pressures in Q2 before lowering interest rates. Asian equities were mixed on Wednesday with the Nikkei adding 0.9% while the Hang Seng fell 1.4%. The ASX closed 0.5% higher with consumer staples the best performer on the day. Commodities on the other hand closed in the green with Gold +0.7%, Silver +0.6%, SGX Iron Ore +0.8% and CMX Copper +0.1%. Today, we have a few bits of data set for release with MI Inflation Expectations at 11am, and also our Retail Sales data at 11:30am which is likely to see modest growth in February, although looking through the seasonally driven volatility in recent months, Retail Sales volumes are likely to have seen weak growth, as household budget pressures remain elevated.
USD
The AUDUSD coupling remained relatively flat over the past 24h, having lowered off the back of USD strength this morning after FOMC Member Waller's early morning speech. The central banker advised that the risk of waiting to cut rates is significantly lower than acting too soon, and that although rate cuts are appropriate this year, it is not yet time. Wall Street closed in the green yesterday with the Dow Jones +1.2%, S&P 500 0.8%, and Nasdaq 0.5%. Another busy day for US data releases with the main focuses being Final GDP q/q expected to remain the same at 3.2%, Unemployment Claims expected increase to 212K, Pending Home Sales m/m expected to rise to 1.4% from -4.9% and Revised UoM Consumer Sentiment which is expected to remain the same at 76.5.
EUR
The AUDEUR opens flat this morning at 0.6032 after Spanish Flash CPI y/y exceeded market expectations by only 0.1%, printing at 3.2% largely due to an acceleration in electricity and fuel prices. To Eurozone equities, the DAX and the CAC both closed in the green, gaining 0.5%, and 0.2% respectively. We will have a few minor data releases out of the Eurozone today with German Retail Sales m/m, German Unemployment Change, M3 Money Supply y/y, and Private Loans y/y.
GBP
The AUDGBP coupling opens this morning largely flat at 0.5159 after the Financial Policy Committee (FPC) Meeting Minutes and FPC Statement showed that the economic outlook for the UK has improved somewhat since the last Financial Stability Report in December. The report did note some risks to the stability of the UK financial system have increased and parts of the global financial system remain vulnerable to stress. The FTSE closed flat. Later this evening, we will get some further data with their Current Account, Final GDP q/q, and Revised Business Investment q/q set for release at 6pm.
NZD
AUDNZD remains flat over the last 24 hours opening this morning at 1.0880. Later in the morning our Kiwi neighbours will have their ANZ Business Confidence results at 11am. This is their only data release for the week.