Markets Expected to Trade Tight Ranges Ahead of ECB Meeting

Xe Corporate APAC

September 10, 2019 2 min read

The AUDUSD opens at 0.6862 (mid-rate) and the NZDUSD opens at 0.6418 (mid-rate) this morning.

The Australian dollar has managed to shrug off yesterday’s disappointing business confidence data release and opens this morning relatively unchanged from yesterday’s open.

Markets are largely subdued as investors looking ahead to Thursday’s ECB policy meeting for direction.

Yesterday afternoon, China’s consumer price index and producer price index data releases for August cancelled each other out with CPI rising 2.8% y/y, marginally ahead of the forecast 2.7% increase while PPI dipped by 0.8% y/y following a 0.3% fall in July. The index was forecast to drop 0.9%.

In the face of ongoing uncertainty around Brexit, employment data in the UK remains strong. Late yesterday the Office for National Statistics reported in the three months to July the UK employment rate posted another record high with the data showing employment increased by 31k jobs to 76.1%. Unemployment during the quarter remained at 3.8%, while average earnings including bonus increased 4% and earnings excluding bonuses rose by 3.8%. Both results were ahead of expectations.

With little in the way of economic data releases ahead of Thursday night’s ECB policy statement, markets are expected to trade tight ranges.

Global equity markets remain mixed -Dow -0.18%, S&P 500 -0.44%, FTSE+0.44%, DAX+0.35%, CAC +0.08%, Nikkei+0.35%, Shanghai -0.12%.

Gold prices continue to slide down 0.8%  trading at $1,490 an ounce. WTI Crude Oil prices are edging lower down 0.5% to $57.39 a barrel.

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Mid-Market Rates

AUDUSD0.6862-0.1%NZDUSD0.6418-0.1%AUDEUR0.62140.0%NZDEUR0.5811-0.1%AUDGBP0.5557-0.1%NZDGBP0.5195-0.2%AUDJPY73.720.2%NZDJPY68.950.1%AUDNZD1.06910.1%NZDAUD0.9353-0.1%GBPAUD1.79950.1%NZDCAD0.8437-0.4% GBPNZD1.92490.2%
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