Australian Dollar (AUD) Bolstered by RBA Minutes
The Australian Dollar (AUD) benefitted from a positive risk mood yesterday to make modest gains. The release of the minutes from the Reserve Bank of Australia’s (RBA) latest meeting also boosted the ‘Aussie’ amid indicators of further rate hikes from the central bank.
A delay in the release of key Chinese economic data may have caused headwinds for AUD, however.
With no significant data today, the ‘Aussie’ is likely to be primarily driven by risk appetite and commodity prices.
New Zealand Dollar (NZD) Jumps after Hotter-Than-Expected Inflation
Above-forecast inflation data and a risk-on mood boosted the New Zealand Dollar (NZD) on Tuesday. The inflation figures bolstered Reserve Bank of New Zealand (RBNZ) rate hike bets.
Looking ahead, movement in the ‘Kiwi’ is likely to be driven by risk appetite today.
Pound (GBP) Falls amid Rumours BoE to Delay Government Debt Sell-Off
The Pound (GBP) fell on Tuesday amid rumours that the Bank of England (BoE) would delay its selling of government debt.
Additionally, continued political uncertainty in the UK also dented confidence in the currency. Reports indicate a large number of MPs are seeking to oust Prime Minister Liz Truss.
Today’s forecast uptick to inflation could cause further losses for GBP amid the UK’s cost-of-living crisis.
Euro (EUR) Ticks Upward as EU Reveals Energy Price Support Measures
The Euro (EUR) edged higher on Tuesday following the unveiling of further EU energy price support measures. Hawkish comments from European Central Bank (ECB) officials also lent support to the Euro.
However, gains for EUR were kept in check by a downbeat reading of German’s ZEW economic sentiment index.
Meanwhile, the final reading of September’s Eurozone CPI figures could lend some support to the Euro today as they are expected to confirm a record surge in inflation.
US Dollar (USD) Subdued amid Risk-On Trade
The US Dollar (USD) struggled on Tuesday. The safe-haven ‘Greenback’ saw headwinds amid a prevalent risk-on mood. A downturn in US Treasury bond yields also weighed on USD.
Continued bets on an aggressive interest rate hike from the Federal Reserve at their next meeting underpinned the currency, however.
A speech from Fed policymaker Neel Kashkari could further bolster expectations of hawkish action, and push USD higher later tonight.
Canadian Dollar (CAD) Pulled Lower by Softer Oil Prices
The Canadian Dollar (CAD) slipped yesterday following a downturn in crude oil prices weighed on the commodity-tied ‘Loonie’.
A forecast easing in September’s inflation could prompt further losses in CAD.
Data Releases
Oct 19th 07:30 USD Fed Kashkari Speech
Oct 19th 16:00 GBP Inflation Rate (Sep) 10%
Oct 19th 19:00 EUR Inflation Rate Final (Sep) 10%
Oct 19th 22:30 CAD Inflation Rate (Sep) 6.8%