USD Weakens as Trump Delays Tariff Blitz

AUD

The Aussie Dollar opens mixed this morning after what was a quiet day in local news yesterday. We did see China keep their benchmark lending rates unchanged as it contends with a weaking CNY while awaiting policy clues from the incoming Donald Trump administration. Commodities followed suit with Gold flat, Silver +0.2%, Iron Ore +0.8% and Copper -1.2%. Asian equities remained strong with the Nikkei +1.2%, Shanghai comp +0.1%, while locally the ASX finished +0.4% as info tech and real estate carried the index higher. It will be a quiet week for the Aussie with no major data being released. Attention will be shifted to the CPI release next Wednesday, 29 January, which could provide hints on whether the RBA will cut rates in next month’s meeting.
 

USD

AUDUSD reached two-week highs, jumping over 1% overnight and opening at 0.6270 after President Trump’s inauguration spurred positive sentiment when his first executive orders didn’t mention immediate tariffs, with reports that hint Trump's economic team is divided over the approach to trade policy. US equities rallied, closing in the green with the Nasdaq +1.5%, the Dow Jones +.8%, and the S&P 500 +1.0%. Apart from President Trump's speech this morning where he stated he will begin an overhaul of the trade system and establishing an external revenue service, there will no major data releases out of the US until Thursday evening with the release of weekly Unemployment Claims.
 

EUR

The AUDEUR coupling lost a little footing overnight, opening lower this morning at 0.6022 with Eurogroup meetings being the only noteworthy data event yesterday, although with no real impact on markets. Eurozone equities closed in the green with the DAX +0.4%, and CAC +0.3%. Looking at today, later this evening at 9pm we will get the German ZEW Economic Sentiment released, expected to decrease from 15.7 to 15.2, however, all eyes will be focused on Eurozone Manufacturing and Services PMI’s releasing on Friday.
 

GBP

AUDGBP opens slightly higher this morning at 0.5075 after what was a quiet day yesterday in UK data releases. UK equities say the FTSE close in the green +0.2%. Today we will see the Claimant Count Change releasing later this evening at 6pm, where claims are expected to increase from 0.3K to 10.3K, alongside with Average Earnings Index 3m/y which is expected to increase from 5.2% to 5.6%.
 

NZD

AUDNZD opens lower this morning at 1.1050 despite this morning’s BusinessNZ Services Index coming through lower than previous at 47.9. No further news from our Kiwi neighbours today, however tomorrow we will see their CPI q/q which is expected to show a +0.5% increase in the previous quarter. Three months ago, the reading was +0.6%.