AUD Gains On Improved Global Growth Sentiment

MNI (Australia) - The AUD has made up some of its Friday underperformance during today’s session, on the back of China reopening hopes. It is currently up 0.6% from the NY close trading around 0.6830 close to the intraday high of 0.6841, which was just under initial resistance of 0.6845. The USD has declined 0.3%.

• AUD is not just stronger against the USD but also other currencies. AUDJPY is up 0.6% to around 91.80. It is 0.3% higher against the EUR and GBP to 0.6467 and 0.5544 respectively. But against the kiwi the AUD is in a tight range and is currently trading around 1.0630.
• APAC equity markets are mixed but generally higher with the ASX up 0.6%, the Hang Seng +3.1% and the CSI 300 +1.1%. S&P e-minis are down 0.2% after US stocks were close to flat Friday night. Oil prices are over 1.5% higher during today’s session and iron ore prices have taken another step up to $108.50-$109, on continued optimism that China will reopen despite the weaker-than-expected Caixin services PMI.
• The focus for the week will be Tuesday’s RBA meeting, where rates are widely expected to rise 25bp to 3.1%. Tonight there are PMIs in Europe and the US and the US ISM services.