Sentiment Shift Opens Door for AUD

AUD

The Aussie Dollar opens stronger against all majors as global risk sentiment improved overnight, seeing most major global equity indices also rise. There was no data out locally yesterday. On Monday, Asian equity indices started the week on the front foot led by the Hang Seng, up 1.8% while the Shenzhen followed up 0.2% and the Nikkei closed flat. The ASX 200 slid -0.3%. Commodities had a good start the week with Natural Gas being the biggest mover at +4.1% and Crude Oil up 2%. Gold and Silver were both flat. Today in China, credit data for January will be released, although the exact time is not known in advance. The data point is worth watching as January data typically accounts for 15-20% of annual new credit and thus provides clues on monetary conditions for the year. Locally, we have low tier data out with Westpac Consumer Sentiment and NAB Business confidence.
 

USD

AUDUSD opens slightly stronger this morning at 0.6272 after hitting highs of 0.6286 overnight as risk sentiment improves. It was a quiet night last night in the US as it was overshadowed by the Super Bowl. A robust session on Wall St. saw the Nasdaq trading +1.1%, the S&P 500 +.6%, and the Dow Jones +.3%, benefiting from Trump's 25% tariffs on steel and aluminum imports. Tonight will see Fed Chair Powell testifying about the Semi-Annual Monetary Policy Report before the House Financial Services Committee, in Washington DC. Tomorrow night will have major US inflation data. President Trump will be in the media throughout the week.
 

EUR

AUDEUR opens at 1-month highs this morning at 0.6087 with the AUD strengthening off improved risk sentiment. Last night saw European Central Bank President Lagarde speaking with little impact on markets. European equities followed suit to open higher yesterday, DAX 0.6% and CAC 0.4%. It is another quite day with the EUR with low tier economic data out tonight. Their main event for the week will be their Flash Employment Change q/q and Flash GDP q/q at the end of the week.
 

GBP

AUDGBP opens at 3-week highs of 0.5072. It was a quiet night last night for the Pound with no economic data out. The FTSE closed +0.8% in the green. It is a quiet day ahead with speeches from the Bank of England's Mann & Bailey to be of particular interest following last week’s rate cut. Looking ahead will see their GDP m/m out on Thursday night.
 

NZD

AUDNZD opens at 2-month highs this morning at 1.1116. This is off the back of improved risk sentiment. There was no data out yesterday and no data out until Thursday’s Inflation Expectations q/q.