Aussie Continues Trending Lower On Weaker Risk Sentiment

Aussie continued its underperformance from Friday during today’s APAC trading driven by a risk off tone. Data on Saturday showed weaker-than-expected China lending and continued soft inflation. AUDUSD was trending lower before the April NAB survey showed a weakening in business conditions. The pair is off its low of 0.6586 but is still down 0.1% at 0.6596. The USD index is flat.

• AUDJPY is down 0.1% to 102.76 after a high of 102.96 earlier. AUDNZD is up 0.2% to around 1.0985 rising on data showing a drop in NZ inflation expectations. AUDEUR is 0.1% lower at 0.6125 and AUDGBP little changed at 0.5267.
• NAB’s measure of business confidence was stable at 1 in April but conditions eased further to 7 from 9. The main activity components moderated with employment now below the historical average, while April price/cost components lower compared with Q1. Aussie looked through the data.
• Equities are mixed with the ASX down 0.3% and KOSPI -0.3% but CSI 300 up 0.1% and Hang Seng +0.6% and Nikkei flat. The S&P e-mini is moderately lower. Oil prices are down again with WTI -0.2% at $78.11/bbl. Copper is up 0.1% and iron ore is around $115.50-116/t.
• Later the Fed’s Mester and Jefferson discuss central bank communications. In terms of data there is just US NY Fed 1-year inflation expectations for April. The Eurogroup meeting is being held and the ECB’s Buch is scheduled to speak.