Improved Risk Sentiment Supports AUD, Important Survey Data Today

AUDUSD rose overnight to a high just under 0.6500 but is now trading around 0.6480. The DXY was weaker as risk appetite improved and a WSJ report kept hopes alive that China is looking to reopen but USDCNH is still comfortably above last week’s lows. European currencies benefited more from this than the AUD, which underperformed most of the G10.

• AUD trended lower against GBP and while it is now off of its lows, it’s trading around 0.5627. AUDJPY continued trading higher over the session and is now around 95.00. AUDNZD was in a range overnight and is now about 1.091.
• Equity markets were higher overnight, apart from the FTSE (-0.5%), as risk sentiment improved. The S&P 500 was up 1% and the Eurostoxx 0.6%. VIX trended lower to 24.4%. Oil prices rose overnight with WTI reaching a high of $93.74/bbl but have now settled back down to around $92. Copper prices were down 2.3% on growth concerns in China. Iron ore is trading around $87-$88.
• Today we have numerous surveys published in Australia starting with the CBA household spending intentions for October, then November Westpac consumer confidence and finally the NAB October business survey. These will be important for not only gauging the outlook for activity but also for price and cost pressures.