Australian Dollar (AUD) Weakens amid Gloomy Mood
The Australian Dollar (AUD) opened this week on the defensive. The risk sensitive currency being undermined as a risk-off mood prevailed.
This downturn in the ‘Aussie’ was reinforced by the publication of the AI group’s services index as it reported a surprise contraction of growth last month.
Australia’s latest consumer and business confidence figures will be in focus today. Will a deterioration in sentiment drag on the Australian Dollar?
New Zealand Dollar (NZD) Dented by Risk-Off Flows
The New Zealand Dollar (NZD) was also undermined by risk-off flows on Monday, although not to the same extent as the ‘Aussie’.
Coming up today, New Zealand’s latest credit card spending figures could place some pressure on the ‘Kiwi’. If September’s release reports spending all but stalled.
Pound (GBP) Steady as Kwarteng’s Fiscal Plan Brought Forward
The Pound (GBP) held its ground through yesterday’s session as the news that Chancellor Kwasi Kwarteng would bring forward his medium-term fiscal plan, helped to offset headwinds stemming from a cautious market mood.
Also supportive of Sterling was the Bank of England’s (BoE) announcement that it would expand support for pension funds.
Turning to today’s session the spotlight is likely to be on the UK’s latest jobs report. With unemployment forecast to have held at a near 50-year low and wages growth predicted to accelerate could this buoy GBP exchange rates?
Euro (EUR) Falters amid Ukraine Concerns
The Euro (EUR) got off to a slow start this week as EUR investors were unnerved by suggestions the war in Ukraine could escalate.
EUR investors fear Vladimir Putin could escalate the conflict in response to a blast which damage the only bridge linking Russia to Crimea over the weekend.
In the absence of any notable EUR data, developments in Ukraine may continue to drive movement in the Euro today.
US Dollar (USD) Strengthens in Bearish Trade
The US Dollar (USD) firmed yesterday, as a prevailing risk-off mood saw investors favour the safe-haven currency.
However, a US regional holiday also resulted in thin trading conditions in the US Dollar, limiting the currency’s upside potential.
Looking ahead, the reopening of US markets could see the ‘Greenback’ enjoy a boost today, particularly if market sentiment remained broadly downbeat.
Canadian Dollar (CAD) Strengthens despite Soft Oil Prices
The Canadian Dollar (CAD) strengthened on Monday, with the commodity-sensitive ‘Loonie’ seemingly unfazed by a modest drop in oil prices.
Looking ahead, the Canadian Dollar could struggle to consolidate these gains today amid a lull in domestic data.
Data Releases
Oct 11th 09:30 AUD Westpac Consumer Confidence (Oct) 82
Oct 11th 10:30 AUD Business Confidence (Sep) 8
Oct 11th 16:00 GBP Unemployment Rate (Aug) 3.6%
Oct 11th 16:00 GBP Average Earnings (Aug) 5.9%
Oct 12th 04:00 GBP BoE Bailey Speech