- The Australian dollar inched higher on Monday, helped by tweaks to market positioning ahead of major geopolitical and central bank events this week.
- The summit between US President Donald Trump and North Korean leader Kim Jong Un will begin at 11am AEST. Whether it will move financial markets is debatable.
- Australian home loan and business confidence data will be released today. US CPI data will also arrive later it the session.
The Australian dollar inched higher on Monday as pre-positioning ahead of major political and central bank events ahead offset disappointment following last weekend’s G7 summit in Canada.
Here’s the scoreboard as at 7am in Sydney.
AUD/USD 0.7609 , 0.001 , 0.13%
AUD/JPY 83.72 , 0.41 , 0.49%
AUD/CNH 4.8675 , 0.0008 , 0.02%
AUD/EUR 0.6457 , -0.0007 , -0.11%
AUD/GBP 0.5685 , 0.0011 , 0.19%
AUD/NZD 1.0830 , 0.0017 , 0.16%
AUD/CAD 0.9873 , 0.0052 , 0.53%
After initially declining following a swathe of negative headlines related to the G7 summit, the Australian dollar gradually recovered during the session, helped by positive news from Italy and tweaks to market positioning ahead of a big week for geopolitical and central bank events.
In the end, the AUD/USD finished the session at .7609, up around 10 pips from Friday’s closing level.
Turning to the session ahead, most headlines will be dominated by the summit between US President Donald Trump and North Korean leader Kim Jong Un that will begin at 11am AEST.
While it will understandably get plenty of attention, whether it will lead to a large move across financial markets remains debatable, especially with the US Federal Reserve and European Central Bank (ECB) announcing key monetary policy decisions later in the week.
Outside of geopolitics, there’ll also be a raft of Australian economic data released during the session.
The National Australia Bank’s (NAB) monthly business confidence survey for May will be released at 11.30am AEST. The ABS will also release home loan data for April alongside the NAB report.
Of the two, the latter appears more likely to move the Aussie given the implications that ongoing softness in the housing market could have on the outlook for interest rate settings from the Reserve Bank of Australia (RBA).
On the international front, Chinese monetary growth, UK unemployment, German investor sentiment, along with CPI and NFIB Small Business Optimism from the United States, are the headline data releases today.
Brexit negotiations will also be in focus with the House of Commons beginning two days of debate on amendments made to the government’s Brexit bill.
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