Australian Dollar (AUD) Rises Despite Disappointing Employment Data
The Australian Dollar (AUD) saw gains overnight on Thursday amid a return of risk appetite later in the day. An uptick in iron ore prices also lent support to AUD.
The ‘Aussie’ saw gains capped by disappointing employment figures however, indicating that the Reserve Bank of Australia (RBA) would pursue a more cautious pace of interest rate hikes.
With no significant data, AUD is likely to be affected by any changes in risk appetite.
New Zealand Dollar (NZD) Climbs amid Risk-On Mood
The New Zealand Dollar (NZD) was bolstered by a risk-on trading sentiment yesterday. The ‘Kiwi’ also found support from its positive correlation to the Australian Dollar (AUD).
A predicted widening of the country’s trade deficit today could weigh on NZD.
Pound (GBP) Boosted by PM Truss Resignation
The Pound climbed against many of its rivals on Thursday following the resignation of Prime Minister Liz Truss. Markets reacted positively to the news.
However the prospect of a fresh leadership contest, kept a lid on Sterling’s gains. Analysts are concerned that a new PM will not have sufficient time to properly analyse the government’s 31 October fiscal plans.
A slump in September’s retail sales figures today could limit gains for Sterling today.
Euro (EUR) Firms as German PPI Hits Annual Record Highs
The Euro (EUR) saw mixed movement on Thursday. The single currency made some gains after German PPI fell by less than expected, increasing bets on further interest rate hikes from the European Central Bank (ECB).
A risk-on trading sentiment capped gains for EUR elsewhere, however. Further developments in the Russia-Ukraine conflict also kept pressure on the Euro.
The Euro may be affected today by risk appetite and any further reports from the Russia-Ukraine conflict.
US Dollar (USD) Drops as Manufacturing Sector Underperforms
The US Dollar (USD) slipped yesterday as a healthy risk appetite weighed on the safe-haven ‘Greenback’. Worse-than-forecast manufacturing data also pushed USD lower.
An unexpected fall in jobless claims underpinned the currency, however. The figures also added to speculation of bumper interest rate hikes from the Federal Reserve, which also lent support to USD.
Speeches from several Fed policymakers today could help the currency to recover lost ground if they promote a hawkish stance.
Canadian Dollar (CAD) Ticks Lower Despite Oil Price Recovery
The Canadian Dollar edged lower on Thursday despite a 1.4% jump in crude oil prices.
A forecast recovery in August’s retail sales could bolster CAD. Any fluctuations in oil prices are also likely to cause movement in the ‘Loonie’.
Data Releases
Oct 21st 07:45 NZD Balance of Trade (Sep) NZ$-1820M
Oct 21st 16:00 GBP Retail Sales (Sep) -0.5%
Oct 21st 22:30 CAD Retail Sales (Aug) 0.2%
Oct 21st 23:10 USD Fed Williams Speech