The AUDUSD opens at 0.6969 (mid-rate) and the NZDUSD opens at 0.6622 (mid-rate) this morning.
Markets are reasonably subdued ahead of Fed Chair Jerome Powell's congressional testimony in the early hours of Thursday morning. Powell will be addressing congress on monetary policy and the state of the US economy with investors keen to see the Fed’s views on potential rate cuts in the near future.
Following Friday’s stellar employment report market expectations which were for the Fed to cut rates by 50 basis points on the 31st July, are as of this morning pointing to a 25 basis point reduction in the funds rate, with investors looking to Powell’s testimony before adjusting their expectations further.
Overnight data from Destatis showed Germany's industrial production and exports recovered in May with industrial output increasing by 0.3% m/m following a 2.0% fall in April. Exports were up 1.1% during May after plummeting 3.45 in April.
This morning’s NAB business confidence report is expected to have little effect on currency.
Global equity markets are in the red - Dow -0.57%, S&P 500 -0.65%, FTSE -0.05%, DAX -0.20%, CAC -0.08%, Nikkei -0.98%, Shanghai -2.58%.
Gold prices are little changed, trading at $1,396 an ounce. WTI Crude Oil prices have inched higher overnight, up 0.6% trading at $57.95 a barrel.
Upcoming Data Releases
- AUD: NAB Business Confidence - 11:30 AEST / 13:30 NZST
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