AUD Recovers from Recent Lows
AUD
The Aussie Dollar sees gains across the board following a quiet news day, with a global stock sell off, seeing the ASX closing down 1.2% and the SHANGHAI COMP closing down 0.2%. Commodities were mixed into the close, with Oil closing up 3%, Nat Gas gaining 7.5%, Iron Ore closed up 0.3% and Copper closing up 0.4% Precious metals finished in the red, with Gold down 0.1% and Silver down 0.2%. Yesterday saw the MI Inflation Gauge m/m grow to 0.6% from 0.2%, and ANZ Job Advertisements m/m grew from -1.8% to 0.3%. The resilience in the job market could be important for the Reserve Bank of Australia as it looks at whether to cut rates next month. China's Trade Balance came in higher by 753B with the CNY beginning the year sliding to new 16-year lows, forcing various types of intervention by authorities in Beijing. Today we have Westpac Consumer Sentiment set to be released at 10:30am.
USD
The AUDUSD recovered from the 0.6131 lows that were seen yesterday, opening this morning at a rate of 0.6189. Wall Street saw a mixed finish, with the DOW JONES closing up 0.6%, with the S&P 500 down 0.1% and the NASDAQ down 0.8%. It was quiet on the news front, with no data releases occurring yesterday. Markets are in suspense for next Monday where Trump will be inaugurated, waiting to see what level of implementation of his “America First” policies will actually occur. Tonight, will see the release of the PPI m/m and Core, both expected to remain unchanged at 0.4% and 0.2%, As a pre-indicator of PCE inflation, the components that are inputs into the core PCE will be closely monitored.
EUR
The AUDEUR sees a boost to start the week, with the pair gaining over 0.5% over yesterday, opening this morning at 0.6028. European equities saw a small hit yesterday, with the DAX closing down 0.4% and the CAC down 0.3%. It was a slow start to the week, with no news being released, with tonight being light on the news. French Gov Budget Balance is set to be released, and the Italian Industrial Production m/m is set to remain at 0.0%.
GBP
The AUDGBP had a strong rally yesterday, with the pair climbing just over 1%, coming close to the 0.5080 barrier before it softened to this morning’s open of 0.5054. The GBP saw a sharp sell-off as rising borrowing costs for the UK government could force the administration to cut public spending, allowing the AUD/GBP to rise. British Equities fell yesterday, with the FTSE closing down 0.3%. There was no news released yesterday, with tonight only having MPC member Breeden speaking, with the possibility to illuminate the poor economic environment the Brits are facing.
NZD
The AUDNZD opens flat, with the pair slowly rising over the day session, then giving up any gains over night, opening this morning at 1.1055. There were no data released yesterday, with the next being on Thursday being the FPI m/m. Overall a very quiet week for the Kiwis.