US Employment Report Looms Large Tonight
AUD
The Aussie dollar finishes off the week opening slightly up against the majors despite the Goods Trade Balance yesterday missing expectations and showing a decrease in exports coming through at 5.77B from the forecast 6.20B. Commodities on the other hand closed mixed with Gold flat, Silver -0.3%, Iron Ore -0.4%, Copper +0.7%. Asian equities followed the trend also closing mixed with The ASX +1.2%, pulled higher by materials and financials, whilst the Nikkei +0.8%, and Shanghai Comp -0.8%. No news set for release locally today, with our next data releases being next Tuesday with Westpac Consumer Sentiment, and NAB Business Confidence.
USD
The AUDUSD opens slightly higher this morning at 0.6724 maintaining its gains after markets were closed for 4th of July Independence Day Holiday. US Equities closed mostly in the green with the NASDAQ +0.9%, S&P +0.5% and the Dow Jones -0.1%. With US markets closed for the Independence Day holiday yesterday, there was little to drive markets however there will be a myriad of releases tonight starting off at 10:30pm with Average Hourly Earnings m/m at forecasted to have a slight decrease from 0.4% to 0.3%, Non-Farm Employment Change predicted to decrease from 272k to 191k and the Unemployment Rate predicted to remain unchanged at 4.0%. With AUD already at 6 month highs having cleared out a lot of resistance, a poor employment report from the US tonight may lead to decent upswing into the weekend.
EUR
The AUDEUR ends the week slightly up at 0.6223 retracing after a late spike last night after ECB Monetary Policy Meeting Accounts were released. Eurozone equities closed in the green with both the DAX and CAC +0.4%, and +0.8% respectively. There will be a myriad of minor data releases today out of the Eurozone today, however all eyes will be focused ECB President Lagarde Speaks speaking early tomorrow morning at 3:15am. Also French Parliamentary Elections take place on Sunday.
GBP
AUDGBP opens slightly higher this morning at 0.5272, following yesterday’s Construction PMIs for June falling short of forecasts of 54.0 reading at 52.2, alongside with their Parliamentary Elections with signs pointing to a Labour win with 410 seats. On to UK Equities the FTSE closed in the green +0.9%. No major data set for release today with only the Halifax HPI m/m set at 4pm, and possibly the Housing Equity Withdrawal q/q set as tentative.
NZD
The AUDNZD rallied this early morning gaining its 1.10 handle opening at 1.1001. No data from our Kiwi neighbours today with all the focus being on their rate decision next Wednesday with no current forecasts.