Australian Dollar (AUD) Dented by RBA Warning
The Australian Dollar (AUD) closed last week on the back foot, following the publication of the Reserve Bank of Australia’s (RBA) semi-annual financial stability review.
The RBA warned that pressures on Australian household budgets are rising and that a further ‘tightening of global financial conditions’ could magnify financial stability risks.
Looking ahead, could another uptick in the AI group services index offer the ‘Aussie’ support at the start of this week?
New Zealand Dollar (NZD) Knocked in Cautious Trade
The New Zealand Dollar (NZD) was subdued on Friday as risk-sensitive currency struggled to attract support as a risk-off mood prevailed.
In the absence of any notable NZD data, its likely movement in the ‘Kiwi’ continue to be dictated by market risk appetite today.
Pound (GBP) Slips Following BoE Ramsden Comments
The Pound (GBP) struggled to attract support at the end of last week’s session following comments from Bank of England (BoE) policymaker Dave Ramsden.
Ramsden suggested the government’s mini-budget is likely to stoke inflationary pressures in the UK and that the bank will need to act forcefully to tackle this.
UK fiscal and political uncertainty may act as the main focus for GBP investors at the start of this week. Potentially leaving Sterling vulnerable to further losses.
Euro (EUR) Undermined by Weak German Data
The Euro (EUR) ticked lower on Friday as EUR investors were left disappointed by the latest German economic releases.
These saw both industrial production and retail sales contract more than expected in August, fuelling fears that the Eurozone’s largest economy is hurtling toward a recession.
Ukraine developments may act as a key catalyst of movement for the Euro at the start of this week. Any escalation of the conflict is likely to weigh on EUR sentiment.
US Dollar (USD) Rallies on Upbeat Payroll Figures
The US Dollar (USD) closed last week’s session on a positive note, after the latest non farm payroll figures reported the US economy added more jobs than expected in September.
The upbeat jobs figures helped to reaffirm expectations for another 75bps interest rate hike from the Federal Reserve next month, underpinning USD demand in the process.
Coming up. USD investors may look to speeches by Fed policymakers for fresh impetus for movement at the start of this week. Will a hawkish consensus extend the US Dollar’s gains?
Canadian Dollar (CAD) Soars on Upbeat Jobs Report
The Canadian Dollar (CAD) jumped on Friday, as the ‘Loonie’ was underpinned by a surprise drop in domestic unemployment as well as a sharp uptick in oil prices.
With CAD data releases thin on the ground this week, will movement in the Canadian Dollar be driven primarily by oil price dynamics?
Data Releases
Oct 10th 10:30 AUD AI Group Services PMI 53.3
Oct 10th 23:00 USD Fed Evans Speech
Oct 11th 03:35 USD Fed Brainard Speech