Australian Dollar (AUD) Sinks Following Upbeat RBA Comments
The Australian Dollar (AUD) climbed against its peers yesterday morning, but relinquished gains later in the session as markets’ risk-on mood faded
This also reverse initial gains made in the wake of optimistic comments from Reserve Bank of Australia (RBA) policymaker Luci Ellis: speaking at a forum, Ellis told attendees that ‘financial sectors globally are in good shape… fiscal support has meant that some firms are considerably more cashed up than before.’
A lack of data today leaves the ‘Aussie’ to trade on external factors such as risk sentiment.
Pound (GBP) Tumbles on Lack of Data, External Headwinds
The Pound (GBP) fell overall on Thursday, as a lack of data exposed Sterling to losses. Brexit uncertainty and soaring inflation exacerbated pressure.
Despite more cordial discussions of late, investors remain worried that the UK government could trigger Article 16, threatening UK-EU relationships.
UK retail sales will likely be the main driver of Pound movement through today’s session, with a rebound in sales growth potentially lifting Sterling.
Euro (EUR) Rises on US Dollar Weakness
The Euro (EUR) wavered against its peers yesterday as markets digested the European Central Bank (ECB)’s persistently dovish monetary policy stance amidst talks from several policymakers.
ECB President Christine Lagarde announced earlier this week that the bank does not intend to hike interest rates next year – subsequent downside has been reversed today, however, as weakness in the US Dollar (USD) boosts EUR.
A further speech from the ECB President may influence the single currency today, alongside German Producer Price Inflation (PPI).
US Dollar (USD) Wavers on Jobless Data
US Dollar exchange rates fluctuated on Thursday as initial jobless claims figures fell by less than expected in America.
For the week ending 13 November, the number of Americans filing new claims for unemployment benefits fell to 268K – a new pandemic low, but less than market estimates of 260K.
The ‘Greenback’ regained some strength in the afternoon as investors were drawn to the currency’s safe-haven status amidst global inflation pressures and central bank uncertainty.
Fed speeches early tomorrow morning may influence USD trading, with a broadly hawkish outlook from policymakers potentially buoying the US Dollar.
Canadian Dollar (CAD) Subdued as Crude Oil Plunges in Value
The Canadian Dollar (CAD) fell yesterday as the US pushed for various allies to release Strategic Petroleum Reserves (SPR), to cater for increased demand.
The ‘Loonie’ was unable to find strength on upbeat jobs data, which revealed that private businesses hired 65.8K employees in October as opposed to 9.6K the month previous.
Canadian retail sales will likely dictate the direction of the Canadian Dollar movement later today, with a slump in sales growth potentially extending the ‘Loonie’s losses.
New Zealand Dollar (NZD) Strengthens on Inflation Expectations
Despite AUD losses, the New Zealand Dollar (NZD) managed to climb on Thursday as business managers’ one-year inflation expectations rose to an 11-year high of 3.7%.
According to investors, the data boosts the odds that the Reserve Bank of New Zealand (RBNZ) will hike rates by 50bps next week.
Data Releases
Nov 19th 17:00 EUR German PPI (Oct) 1.9%
Nov 19th 17:00 GBP Retail Sales (Oct) 0.5%
Nov 19th 18:30 EUR ECB President Lagarde Speech N/A
Nov 19th 23:30 CAD Retail Sales (Sep) -1.7%
Nov 20th 01:45 USD Fed Waller Speech N/A
Nov 20th 03:15 USD Fed Clarida Speech N/A
Nov 20th 04:00 EUR ECB President Lagarde Speech N/A