Australian Dollar (AUD) Stumbles Following Underwhelming Wage Figures
The Australian Dollar (AUD) trended lower yesterday, following the release of Australia’s latest wage price index.
Whilst wage growth printed in line with expectations, it remains relatively weak, something which AUD analysts suggest supports the Reserve Bank of Australia’s (RBA) current dovish bias.
A speech from policymaker Tony Richards may influence ‘Aussie’ trading this afternoon.
Pound (GBP) Firms as Inflation Exceeds Expectations
The Pound (GBP) climbed against the majority of its peers on Wednesday as UK headline inflation exceeded forecasts of 3.9%.
The cost of housing and utilities – namely electricity, gas and liquid fuels – drove CPI to a 10-year high of 4.2%, sparking hopes of imminent monetary policy tightening from the Bank of England (BoE).
A lack of UK data today leaves the Pound to trade on external factors such as Brexit, and risk-sentiment.
Euro (EUR) Trades Mixed as Inflation Finals Print as Expected
The Euro (EUR) traded in a mixed range yesterday as headline inflation met initial estimates of a rise to 4.1%. Core inflation in the Eurozone printed slightly lower than expected, at 2%.
European Central Bank (ECB) Governing Council Member Isabel Schnabel gave a measured speech, advising that monetary policymakers must avoid the mistake of premature tightening, while keeping a watchful eye on the upside risks to inflation and retaining optionality to be able to act if needed.
More speeches from ECB officials may affect Euro trading through today’s session.
US Dollar (USD) Fluctuates Amid Lack of Significant Data
The US Dollar (USD) wavered on Wednesday amidst a lull in notable USD data.
Federal Reserve policymakers gave alternating dovish and hawkish signals, with St. Louis’ James Bullard calling for the FOMC to turn ‘more hawkish’, while San Francisco’s Mary Daly said the central bank should stay patient. Comments from New York’s John Williams on the Treasury Market had little effect on exchange rates.
Today’s US jobless data will likely drive movement this evening, with the US Dollar likely to strengthen if new jobless claims continued to fall last week.
Canadian Dollar (CAD) Muted on Sinking Oil Prices
WTI crude lost value yesterday, subduing Canadian Dollar (CAD) sentiment. As oil demand increases, a release of US inventories remains likely but unconfirmed.
Meanwhile, year-on-year inflation met expectations, but failed to boost the ‘Loonie’.
New Zealand Dollar (NZD) Trades Mixed on RBNZ Rate Hike Hopes
The New Zealand Dollar (NZD) fluctuated on Wednesday as bets rose for another rate hike from the Reserve Bank of New Zealand (RBNZ) later this month.
Also boosting ‘Kiwi’ sentiment, NZ Prime Minister Jacinda Ardern announced the country will lift a temporary border around Auckland on 15 December.
Data Releases
Nov 18th 07:05 USD Fed Evans Speech N/A
Nov 18th 07:10 USD Fed Bostic Speech N/A
Nov 18th 12:05 AUD RBA Richards Speech N/A
Nov 18th 20:00 EUR ECB Panetta Speech N/A
Nov 18th 22:00 EUR ECB Fernandez-Bollo Speech N/A
Nov 18th 22:30 USD Fed Bostic Speech N/A
Nov 18th 23:30 CAD ADP Employment Change (Oct) 40K
Nov 18th 23:30 USD Initial Jobless Claims (13/Nov) 260K
Nov 18th 23:30 USD Philadelphia Fed Manufacturing Index (Nov) 24
Nov 19th 00:30 EUR ECB Lane Speech N/A
Nov 19th 00:30 USD Fed Williams Speech N/A
Nov 19th 05:00 USD Fed Evans Speech N/A
Nov 19th 06:30 USD Fed Daly Speech N/A