Australian Dollar (AUD) Tumbles amid Poor Chinese Trade Data
The Australian Dollar (AUD) fell toward the beginning of Wednesday after below-forecast GDP figures.
The ‘Aussie’ tumbled further after the release of Chinese trade figures. Exports and imports both slipped in August amid harsh Covid-19 restrictions.
Looking to the day ahead, an expected narrowing of Australia’s trade surplus could prompt further losses in the currency.
New Zealand Dollar (NZD) Drops as Exports to China Struggle
The New Zealand Dollar (NZD) slipped over the course of yesterday’s session. China’s poor trade figures likely weighed on NZD.
A drop in second quarter manufacturing sales may heap additional pressure on the ‘Kiwi’ if today’s figures print as forecast.
Pound (GBP) on Cautious BoE Remarks
The Pound (GBP) stumbled against its rivals yesterday, as several Bank of England (BoE) struck a cautious tone as they appeared before Parliament’s Treasury select Committee.
Speaking to MPs, BoE governor Andrew Bailey claimed there was nothing the bank could do to prevent the UK slipping into a recession.
The Pound could mount a recovery later today, as new Prime Minister Liz Truss is expected to unveil her plan to freeze UK energy prices.
Euro (EUR) Climbs Despite Supply Cut Threats from Putin
The Euro (EUR) climbed on Wednesday despite the worsening energy crisis in the Eurozone. Gains for the single currency were supported by increased European Central Bank (ECB) rate hike bets.
The trading bloc’s energy crisis may have capped gains for the Euro following threats to energy supplies from Russian President Vladimir Putin.
Investors will be keenly awaiting the ECB’s interest rate decision later today. If the ECB raises rates as forecast then it could bolster EUR.
US Dollar (USD) Firms in Downbeat Trade
The US Dollar (USD) rose to a fresh two-decade high against many of its rivals on Wednesday amid a prevailing risk-off mood.
Reinforcing the upside in USD exchange rates were hawkish expectations for the next Federal Reserve interest rate decision.
A forecast rise in jobless claims later today could limit gains for USD if investors take it as a sign of a cooling labour market.
Canadian Dollar (CAD) Falls despite BoC Interest Rate Hike
The Canadian Dollar (CAD) dropped yesterday amid a downturn in crude oil prices. A 0.75% interest rate hike from the Bank of Canada (BoC) did little to bolster CAD, with the move largely priced in by
markets.
With no significant data today, the commodity-tied ‘Loonie’ will likely be affected by any changes in the price of crude oil.
Data Releases
Sept 8th 11:30 AUD Balance of Trade (Jul) A$14.5B
Sept 8th 13:05 AUD RBA Gov Lowe Speech
Sept 8th 22:15 EUR ECB Interest Rate Decision 1.25%
Sept 8th 22:30 USD Initial Jobless Claims (13/Sep) 240,000
Sept 8th 22:45 EUR ECB Press Conference
Sept 8th 23:10 USD Fed Powell Speech