The Australian Dollar eyes retail sales
AUD
The Aussie dollar opens mixed against the majors this morning slipping slightly yesterday despite hawkish RBA minutes, retreating from a two-week high even after the central bank alluded to the possibility of another interest rate hike. Commodities similarly closed mixed with Gold -0.1%, Silver +0.3%, Iron Ore-0.8% and Copper +0. Asian equities also followed suit with the Nikkei +1.1%, Hang Seng +0.3%, and the Shanghai Comp 0.1%. Locally, the ASX slid -0.4% lead by real estate and consumer discretionary. Today we have a few Aussie data releases with the focus being the Retail Sales m/m forecasted to increase from 0.1% to 0.3% set to be released at 11:30am alongside with Building Approvals m/m also forecasted to increase from -0.3 to 1.5%. There will also be the Caixin Services PMI out of China set at 11:45am.
USD
The AUDUSD opens higher this morning at 0.6670 rallying yesterday evening after Federal Reserve Chair Jerome Powell struck a moderately dovish tone in his comments, suggesting that the U.S. central bank is more than likely to start its easing cycle later this year. Comments by the Fed's top official outweighed data showing U.S. job openings increased in May after posting outsized declines in the prior two months. Job openings, a measure of labour demand, rose 221,000 to 8.140 million on the last day of May, according to the JOLTS report. US equities however closed in the green with the Dow Jones +0.4%, S&P 500 +0.6%, and the NASDAQ +0.8%.Another busy night ahead for US data releases with the main focuses being the ADP Non-Farm Employment Change forecasted to increase from 152K to 163K, Unemployment Claims set to slightly increase from 233K to 234K, Final and ISM Services PMI, and the FOMC Meeting Minutes which will provide further insight on what direction the Fed is leaning towards their monetary policy.
EUR
The AUDEUR opens slightly higher this morning regaining its 0.62 handle after retracing yesterday evening at 0.6202 despite ECB President Lagarde’s commentary that inflation was headed in the right direction, and that it was very unlikely that the Eurozone would ever go back to ultra-low rates. Eurozone equities closed in the red with the DAX -0.7%, and CAC -0.3%. There will be a myriad of data releases today with the Eurozone Final Services PMI’s set for release, however the primary focus will be on ECB President Lagarde speaking again
GBP
The AUDGBP opens slightly lower this morning at 0.5252 after what was a quiet day for news releases yesterday out of the UK with only BRC Shop Price Index y/y coming through lower at 0.2% from previous of 0.6%. UK equities closed in the red with the FTSE -0.6%. No major data set for release today with only the Final Services PMI set for release at 6:30, however tomorrow we will see the Parliamentary Elections which will be an old day event.
NZD
The AUDNZD opens largely flat this morning hitting highs of 1.0988 late last evening before retracing at 1.0964, despite some under performing GDT Price Index data releasing earlier this morning at -6.9%. Today we will see from our Kiwi neighbours their ANZ Commodity Prices m/m at 11am which will be the last release for the NZD this week.