Australian Dollar (AUD) Tumbles on Governor Lowe Comments
The Australian Dollar (AUD) dipped against its peers on Tuesday as a speech from Reserve Bank of Australia (RBA) Governor Philip Lowe reiterated that inflationary pressures do ‘not warrant an increase in the cash rate in 2022’.
Economists do not expect Australian inflation to reach the levels seen elsewhere – some acceleration is predicted, but it is largely expected to stay within the RBA’s target range.
Into today, a lack of significant AU data will leave the ‘Aussie’ to trade on external factors.
Pound (GBP) Supported as UK Employment Exceeds Expectations
The Pound (GBP) climbed yesterday as the number of people in work in the UK exceeded estimates.
Employment increased by 247K last quarter – above market expectations of 185K – driven by a record high net flow from unemployment to employment.
Today, UK inflation data is likely to be the main catalyst for Pound movement – if predictions of a rise to 3.9% are accurate, the Bank of England (BoE) may consider tightening monetary policy sooner rather than later.
Euro (EUR) Bolstered by Employment Data, GDP
The Euro (EUR) lifted overall on Tuesday, as Eurozone employment data exceeded forecasts. A preliminary reading suggested that employment grew by 0.9% last month.
Eurozone GDP met quarterly expectations of 2.2%, also providing upside. Yesterday’s reading was unchanged from initial estimates: the economy continued to recover from coronavirus, with Austria, France and Portugal recording the biggest expansions.
Eurozone inflation is likely to be the main EUR trading stimulus in today’s session: a rise above expectations may encourage hopes of more aggressive policy tightening.
US Dollar (USD) Climbs on Retail Sales
Retail sales for the month of October boosted the US Dollar (USD) yesterday, exceeding forecasts of a 1.4% rise to climb by 1.7%, as consumers spent more on early holiday shopping and gasoline.
The strongest gain since March, sales at non-store retailers recorded the biggest increase, followed by sales at gasoline stations, electronics and appliance stores, miscellaneous store retailers and building materials and garden equipment.
Various speeches by Federal Reserve officials overnight may influence today’s trading, alongside risk sentiment and other external factors.
Canadian Dollar (CAD) Trades Mixed, Oil Prices Consolidate
The Canadian Dollar (CAD) wavered on Tuesday as analysts fretted over depleted oil inventories.
While rising crude prices are generally good for the ‘Loonie’, uncertainty over supply and demand exerted downside, as investors considered the implications of another possible Covid spike.
Today’s inflation rate will likely inspire forward movement, potentially influencing rate hike expectations.
New Zealand Dollar (NZD) Subdued on AUD Downside
The New Zealand Dollar (NZD) slumped yesterday as a lack of data left the currency exposed to losses.
‘Aussie’ downside weighed upon the ‘Kiwi’, alongside moderate tensions between America and New Zealand’s biggest trading partner – China – over the politicisation of trade issues.
Data Releases
Nov 17th 17:00 GBP Inflation Rate (Oct) 3.9%
Nov 17th 20:00 EUR Inflation Rate (Oct) 4.1%
Nov 17th 23:30 CAD Inflation Rate (Oct) 4.7%
Nov 18th 00:00 EUR ECB Schnabel Speech N/A
Nov 18th 00:10 USD Fed Williams Speech N/A
Nov 18th 02:00 USD Fed Bowman Speech N/A
Nov 18th 02:40 USD Fed Mester Speech N/A
Nov 18th 03:40 USD Fed Daly Speech N/A
Nov 18th 03:40 USD Fed Waller Speech N/A
Nov 18th 04:30 EUR ECB President Lagarde Speech N/A