AUD Bolstered by Chinese Economic Plan
AUD
The AUD opens stronger against most major currencies after China released a 30-point plan aimed at boosting domestic consumption as a key driver of economic growth. The plan was issued on Sunday and noted China will "place a stronger economic policy focus on improving living standards and boosting consumer spending". A major component of the plan is raising wages and expanding income sources for both urban and rural residents. Asian equities were stronger to end the week with the Shenzhen +2.4%, the Hang Seng +2.1%, and the Nikkei up +0.7%. The ASX regained +0.5%. Locally, a quiet weekend, however, Industrial Production y/y (expected 5.3%) and Retail Sales y/y (expected 3.8%) out of China today. A quiet day and week for the Aussie, with RBA Assistant Governor Hunter speaking tomorrow and Melbourne Institute Leading Index m/m. All eyes are on Thursday's Employment Change and Unemployment Rate data.
USD
AUDUSD continues to recover from last week's lows to open at 0.6330. Wall St. was firmer from the open with the Dow moving to early gains of around 1.5% while the S&P was up almost 2% with the Nasdaq almost 2.5% higher. Over the weekend, the US saw their Prelim UoM Consumer Sentiment data come in considerably under expectation, at 57.9, (expected 63.1). Secondly, Prelim UoM Inflation Expectations was up at 4.9%, (previously 4.3%). Tonight, we'll see Core Retail Sales m/m forecasted at 0.3%, and Retail Sales m/m forecasted at 0.6%. The Federal Reserve's interest rate decision will take place on Thursday morning.
EUR
AUDEUR strengthens over the weekend to open at 0.5818. European equities closed stronger with the DAX 1.9% and CAC 1.1%. A quiet weekend out of the Eurozone, today we have German Buba Monthly Report out this evening. We have German ZEW Economic Sentiment out tomorrow evening a leading indicator of economic health and an early signal of future economic activity, forecasted at 48.1, (prev 26.0). No major data out for the Euro for the rest of the week.
GBP
AUDGBP creeps up from Friday’s crash to open stronger at 0.4894. The FTSE opens up 1.1%. No data out of the UK over the weekend. Today at 11am, Rightmove House Price Index m/m data is set to come out (prev. 0.5%). HPI is a leading indicator of the housing industry's health because rising house prices attract investors and spur industry activity. Nothing major out for the Pound until Thursday when we'll see the Bank of England's interest rate decision, commentary and press conference.
NZD
AUDNZD opens considerably weaker at 1.0989, down a tad from Saturday's 1.1008 high. No NZ data out over the weekend, Business NZ Services Index came in this morning at 49.1, (prev. 50.4). Minor data out Wednesday (GDT Price Index, Westpac Consumer Sentiment and Current Account data). Attention on Thursday morning, NZ have their GDP q/q forecasted at 0.4% (prev. -1%).