Major currencies are trading lightly changed for the most part so far today, although risk sentiment is slightly softer ahead of European morning trade. Both US and European futures are lower and that is tempering with the optimism slightly from earlier in the week. AUD/USD briefly moved up above 0.6900 to its highest since February 2023 but is now back down to 0.6875, keeping just below the June and July 2023 highs of 0.6895-00.
Headline inflation in Australia did fall back into the target band but RBA governor Bullock already warned yesterday that it shouldn't be taken at face value. The trimmed mean reading came in at 3.4% and remains a thorn in the side of the RBA for now.
Besides that, we did see China cut rates and that is helping to lift domestic equities still. Is this the start of a turnaround for sentiment in Chinese markets? We've been at this juncture one too many a time since the post-Covid era in China but it is yet to meaningfully materialise.
Looking to the session ahead, we won't be getting too much else on the data front. That won't give market players much to work with after the earlier moves this week and having to consider month-end flows in the sessions ahead as well.
0645 GMT - France September consumer confidence
0800 GMT - Switzerland September UBS investor sentiment
1100 GMT - US MBA mortgage applications w.e. 20 September
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.