Australian Dollar (AUD) Picks Up on Commodity Dynamics
The Australian Dollar (AUD) gained on Monday as the price of iron ore – one of Australia’s main exports – recovered with increased building activity in China.
Also buoying the ‘Aussie’ were comments from Australian Prime Minister Scott Morrison that the country will be re-opening its borders to international travel next month.
Today’s PMI data will likely influence trading today – manufacturing and service-sector activity are expected to have increased in November, potentially lending support.
Pound (GBP) Sentiment Dented by Rate Hike Uncertainty
The Pound (GBP) tumbled yesterday on dovish comments from Bank of England (BoE) policymaker Andrew Bailey.
The central bank governor remarked that the risks to the BoE’s inflation forecasts are two-sided: which some analysts took to mean a rate hike in December is less likely.
UK PMI data may affect today’s Sterling exchange rates – manufacturing and service-sector activity are expected to have fallen on last month, potentially exerting pressure.
Euro (EUR) Subdued on Covid Resurgence
The Euro (EUR) fell on Monday as rising Covid cases led to concerns over new restrictions being imposed in parts of the Eurozone.
A national lockdown in Austria resulted in mass protests over the weekend; the country’s Health Minister, Wolfgang Mueckstein, insisted that lockdown was the only option to reduce the country’s infection rate.
Further weighing upon the single currency, November’s consumer confidence data fell to -6.8. Today’s Eurozone PMIs will likely push the Euro lower, with both manufacturing and services activity in the bloc forecast to slow this month.
US Dollar (USD) Retains Strength as Powell Re-Elected
The US Dollar (USD) was supported yesterday by the re-election of Federal Reserve Chairman Jerome Powell. Had Lael Brainard been elected, market participants would expect dovish messaging and a greater tolerance for high inflation.
Meanwhile, Covid infections in the USA have dropped and most economists expect the US economy to accelerate into the year’s end.
Today’s data is likely to boost USD higher still, as both manufacturing and service-sector PMIs are expected to print positively.
Canadian Dollar (CAD) Wavers as Oil Attempts a Recovery
The Canadian Dollar (CAD) avoided significant downside yesterday over a slight recovery in the price of crude oil, following an initial drop to below $74 dollars per barrel.
A speech by the Bank of Canada’s Paul Beaudry may influence trading today, depending on whether a hawkish or dovish tone is struck.
New Zealand Dollar (NZD) Counters Headwinds with RBNZ Rate Hike Expectations
The New Zealand Dollar (NZD) traded down overall on Monday, given strength in the US Dollar and a lack of significant NZ data.
Losses were capped, however, as bets rise for another interest rate hike from the Reserve Bank of New Zealand (RBNZ).
Data Releases
Nov 23rd 08:00 AUD Markit Services PMI Flash (Nov) 54
Nov 23rd 08:00 AUD Markit Manufacturing PMI Flash (Nov) 58.5
Nov 23rd 19:00 EUR Eurozone Markit Services PMI Flash (Nov) 53.5
Nov 23rd 19:00 EUR Eurozone Markit Manufacturing PMI Flash (Nov) 57.3
Nov 23rd 19:30 GBP Markit/CIPS Services PMI Flash (Nov) 58.5
Nov 23rd 19:30 GBP Markit/CIPS Manufacturing PMI Flash (Nov) 57.3
Nov 23rd 21:00 GBP BoE Haskel Speech N/A
Nov 24th 00:45 USD Markit Services PMI Flash (Nov) 59
Nov 24th 00:45 USD Markit Manufacturing PMI Flash (Nov) 59
Nov 24th 04:00 CAD BoC Beaudry Speech N/A