Chinese Narrative Drives AUD Higher
AUD
The AUD opens higher against the majors bar the NZD after a string of positive Chinese data showed the economy started the year on a firmer footing. Retail Sales rose by 4.0% in the Jan-Feb period from a year ago, compared with the 3.7% year-on-year growth in December. Industrial Production also climbed +5.9% in the first two months of the year from a year ago. On Sunday, Chinese policymakers unveiled a wide-ranging plan to stimulate domestic consumption, reiterating Beijing's pledges to bolster residents' income and household spending. Asian equities started the week off in a more buoyant mood: the Nikkei up +0.9% the Hang Seng +0.8% while the Shenzhen slid -0.2% despite stronger China production and retail sales data. The ASX 200 climbed +0.8% materials and energy dominated. Commodities were mixed with Gold and Silver up 0.5%, and 0.2% while Iron Ore -0.6%, and Copper +1.6%. No major local data releases today with only RBA Assist Gov Hunter Speaking later this morning at 10:20am.
USD
The AUDUSD coupling hits a three-week high opening this morning at 0.6385 after some weaker US data was released overnight with US Retail Sales missing forecasts, rising less than expected in February at 0.2% compared to 0.6% forecasts. The Empire State Manufacturing Survey also missed forecasts falling twenty-six points to -20.0, plummeting this month by the most in nearly two years, a survey showed on Monday, with new orders falling sharply and input prices climbing at the fastest rate in more than two years in the latest sign the economy may be weakening. US equities remained in the green, however, with the Dow Jones and S&P 500 both up 1.0%, while the Nasdaq saw an 0.6% increase. Nothing major set for release overnight out of the US, with all eyes this week focused on early Thursday morning with the Fed's interest rate decision.
EUR
The AUDEUR opens slightly higher this morning at 0.5846 after the Aussie strengthened from improved risk sentiment out of China. Eurozone equities closed in the green with the DAX +0.7%, and the CAC +0.6%. There will be a few Eurozone releases later this evening with Italian Trade Balance at 8pm, however the main event for today would be the German ZEW Economic Sentiment at 9pm which is expected to increase from previous 26.0 to 48.1. The Eurozone Trade Balance, and Eurozone ZEW Economic Sentiment will also be released at the same time.
GBP
The AUDGBP coupling regains its 0.49 handle opening higher at 0.4916 this morning, gaining late last night due to improved risk sentiment. Looking at UK equities, the FTSE closed in the green +0.6%. No further news out of the UK today. It will be a quiet week overall with the next main release being this Thursday with their bank rate decision with expectations of a hold keeping the rate at 4.50%.
NZD
The AUDNZD opens lower for the second day in a row at 1.0961, being set for a choppy week crammed with global central bank meetings, policy announcements in China and domestic economic data. No further data for today however GDP q/q will be released on Thursday with forecasts expecting GDP to increase +0.4% after a -1.0% decline in the previous quarter.