Australian Dollar (AUD) Falls after Disappointing Chinese Private Sector Data
The Australian Dollar (AUD) edged lower on Monday. The ‘Aussie’ initially climbed amid positive retail sales figures and a return of risk appetite.
A fall in output across all of China’s private sectors pulled AUD lower however, amid the continued implementation of ‘zero-Covid’ lockdowns.
Looking ahead, the Reserve Bank of Australia’s (RBA) interest rate decision is likely to cause movement in AUD. If the RBA hikes rates above forecasts it could boost the currency.
New Zealand Dollar (NZD) Drops alongside Risk-On Mood
The New Zealand Dollar (NZD) fell yesterday. The ‘Kiwi’ falling victim to risk-off flows as China’s battle against Covid weighed on market sentiment.
With no significant data today, the direction of the New Zealand Dollar is likely to remain linked to market risk appetite.
Pound (GBP) Slips Despite BoE Rate Hike Bets
The Pound (GBP) slid on Monday. Questions over the future of Home Secretary Suella Braverman cast a bit of a shadow over Rishi Sunak’s premiership.
Markets expectations of a 75bps rate hike from the BoE lent support to Sterling however, although the possibility of a below-forecast hike kept gains limited.
Confirmation of a downturn in the UK’s manufacturing sector could see Sterling fall further later this evening.
Euro (EUR) Bolstered by Record-High Eurozone Inflation
The Euro (EUR) rose on Monday after Eurozone inflation shot to a record-high of 10.7% in October. While the accompanying GDP release confirmed the bloc continued to grow in the third quarter.
On the other hand, expectations that the European Central Bank (ECB) would pursue a dovish path limited gains for EUR.
The single currency is set to be affected by risk appetite and ECB rate hike bets today.
US Dollar (USD) Rises amid Market Bets on 0.75% Fed Rate Hike
The US Dollar (USD) found support yesterday as investors cemented their expectations for a 75bps rate hike from the Federal Reserve. A rise in US Treasury bond yields also pushed USD higher.
A drop in private sector output kept gains for USD limited however, as well as a risk-on mood.
A further predicted fall in the US manufacturing sector today could cause further losses for the currency.
Canadian Dollar (CAD) Climbs despite Oil Price Slip
The Canadian Dollar (CAD) firmed on Monday amid a resurgent risk-on market mood. Gains for the commodity-tied ‘Loonie’ were capped by a fall in oil prices, however.
A forecast downturn in manufacturing sector output could weigh on CAD today.
Data Releases
Nov 1st 08:00 AUD S&P Global Manufacturing PMI (Oct) 52.8
Nov 1st 13:30 AUD RBA Interest Rate Decision 2.85%
Nov 1st 18:20 AUD RBA Gov Lowe Speech
Nov 1st 19:30 GBP S&P Global/CIPS Manufacturing PMI (Oct) 45.8
Nov 1st 23:30 CAD S&P Global Manufacturing PMI (Oct) 49
Nov 1st 23:45 USD S&P Global Manufacturing PMI (Oct) 49.9