Australian Dollar (AUD) Drops as China’s Covid Cases Surge
The Australian Dollar (AUD) slipped yesterday. Poor industrial profit figures from China weighed on the ‘Aussie’, as well as a surge in Covid-19 cases across multiple Chinese cities.
On the other hand, the ‘Aussie’ was underpinned by bets on further interest rate hikes from the Reserve Bank of Australia (RBA).
A forecast rise in third quarter PPI could help AUD to recover some lost ground today.
New Zealand Dollar (NZD) Slides amid USD Surge
The New Zealand Dollar (NZD) fell yesterday as a sharp rebound in the US Dollar undermined market risk appetite.
Looking ahead, the ‘Kiwi’ could find support from an uptick in consumer confidence figures today.
Pound (GBP) Ticks Lower as Markets Mull Over Budget Delay
The Pound (GBP) edged lower yesterday. The downturn in Sterling came as markets contemplated the delay of the UK government’s fiscal statement until 17 November.
The currency found support from continued confidence in Rishi Sunak’s premiership, however. A recovery in retail sales volumes also underpinned GBP.
With no significant data today, the currency is likely to be affected by the UK’s political sphere.
Euro (EUR) Drops Despite 75bps Rate Hike from ECB
The Euro (EUR) fell yesterday despite a 75bps interest rate hike from the European Central Bank (ECB). Speculation that the ECB could slow its pace of tightening weighed on EUR.
ECB President Christine Lagarde’s statement that that the central would continue to hike interest rates limited losses for EUR, however.
Data from Germany, the trading bloc’s largest member, could have a mixed effect on EUR today. A forecast contraction in the country’s economy could weigh on the single currency, while an acceleration in inflation may be EUR positive.
US Dollar (USD) Gains as Economy Expands Above Forecasts
The US Dollar (USD) climbed yesterday after above-forecast GDP figures indicated a return to growth for the US economy.
The currency’s gains were capped by disappointing durable goods data, however. New orders rose below forecasts in September.
A forecast rise in the core PCE price index, the Federal Reserve’s preferred measure of inflation, today could push USD high again later this evening.
Canadian Dollar (CAD) Boosted by Rise in Oil Prices
The Canadian Dollar (CAD) rose on Thursday, the commodity-linked currency being buoyed by a mild recovery in crude oil prices.
GDP data could weigh on CAD today. The Canadian economy is forecast to have stalled in August and contract in September.
Data Releases
Oct 28th 10:30 AUD PPI (Q3) 2%
Oct 28th 18:00 EUR German GDP Growth Rate (Q3) -0.2%
Oct 28th 22:00 EUR German Inflation Rate (Oct) 10.1%
Oct 28th 22:30 CAD GDP (Aug) 0%
Oct 28th 22:30 CAD GDP (Sep) -0.2%
Oct 28th 22:30 USD Core PCE Price Index (Sep) 5.2%