US Inflation on the Radar Tonight

AUD

The AUD opens mixed against the majors with little economic data over the past 24h. The ASX fell -0.4% with Real Estate and IT sectors falling over -2.0%. Asian equities were mixed, the Hang Seng and Shenzhen up +0.4% and +0.3% while the Nikkei slid -0.6%. Commodities mixed with Cotton being the strongest gainer at 2.1% and Copper dropped -2.3%. Gold prices continue to trade high with increased economic uncertainty being a push during these testing times. No local data yesterday or today for the Aussie with markets looking towards the RBA cash rate decision on Tuesday. China will see their Manufacturing PMI out Monday.
 

USD

AUDUSD saw a rise, floating back above the 0.63 handle to reach 0.6318 highs in the early evening, opening this morning at 0.6298. Wall St. opened with small gains and traded either side of flat before settling mostly in the red: Dow -0.4%, Nasdaq -0.5% and S&P 500 flat. US Final GDP q/q came in slightly higher than expectation at 2.4% from forecasted 2.3% and Unemployment Claims at 224k, a decrease of 1,000 from the previous week's revised level. Pending Home sales m/m improved 2.0% in February from previous -4.6% in January. Tonight, we'll see Core PCE Price Index, Revised UoM Consumer Sentiment and Revised UoM Inflation Expectations. Core PCE (The Fed's preferred inflation gauge) is expected at +0.3% m/m, in line with the previous reading. Last week, the Fed held their key interest rate, as widely anticipated. The central bank did note that 'uncertainty around the economic outlook has increased'. Tonight' inflation report will be key for future interest rate guidance.
 

EUR

AUDEUR touched 0.5863 highs yesterday, 2 points off 3-week highs, before falling off to open at 0.5835. The DAX fell -0.7% and the CAC gave up -0.5%. French President Macron hit the wires saying that Europeans will respond to US tariffs by reciprocating and that they “waste a lot of time and create a lot of uncertainty”. Little news from Europe over night with M3 Money Supply y/y coming in at 4.0% from forecasted 3.8% and private loans y/y at 1.5% up from previous 1.3%. A few bits of data out over the weekend with Spanish Flash CPI y/y, French Prelim CPI m/m and German Buba President Nagel speaking in a panel discussion titled "Inflation Expectations and Reality: Implications for the Last Mile of Disinflation".
 

GBP

AUDGBP travelled sideways throughout the course of yesterday before falling 0.5% in the evening to kick off the day at 0.4867 Coming into London lunch and minimal data or announcements reported had FTSE down -0.3%. Tonight, we will see Retail Sales m/m forecasted at -0.3%, Final GDP q/q and the Goods Trade Balance.
 

NZD

AUDNZD opens flat at 1.0981 following a rather quiet week for the NZD. Yesterday saw highs of 1.0998, testing the 1.1000 handle again. ANZ Business Confidence will be released on Monday morning.