Australian Dollar (AUD) Bolstered by Easing of China’s Covid Restrictions
The Australian Dollar (AUD) climbed at the end of last week after news that China would be easing its Covid-19 restrictions. Chinese authorities announced on Friday that they would be shortening quarantine times. A risk-on mood also boosted AUD.
On the other hand, signs of weakness in the Chinese economy capped gains for the ‘Aussie’ as well as a downturn in iron ore prices.
With no significant data today, AUD could be affected by any shifts in risk appetite.
New Zealand Dollar (NZD) Pulled Lower by Poor Business Performance
The New Zealand Dollar (NZD) slipped on Friday. A risk on mood underpinned NZD, but a disappointing PMI overnight pulled the ‘Kiwi’ lower.
Additionally data releases indicating a downturn in private sector output could weigh on NZD today.
Pound (GBP) Falls as UK Sees Third Quarter Contraction
The Pound (GBP) fell against its peers on Friday. Confidence in the currency was dented by GDP figures indicating a third quarter contraction. The slowdown was not as deep as expected however, limiting losses for Sterling.
Dovish comments from BoE policymakers also weighed on GBP. Silvana Tenreyro signalled that the central bank should resist raising interest rates any higher.
The Pound could be affected by rate hike bets and expectations surrounding the autumn fiscal statement today.
Euro (EUR) Rises amid ECB Rate Hike Bets
The Euro (EUR) firmed on Friday. Expectations of further interest rate hikes from the European Central Bank (ECB) pushed EUR higher after a rise in German inflation.
A poor outlook for the Eurozone capped gains for the single currency, however. The EU Commission revised its forecasts for a 0.3% slowdown to growth in 2023.
A forecast drop in Eurozone industrial production figures could weigh on EUR today.
US Dollar (USD) Slumps as Markets Predict Fed Slowdown
The US Dollar (USD) saw sustained selling on Friday which saw the currency tumble. The sell-off in USD came amid market bets on a slower pace of rate hikes from the Federal Reserve.
A risk-on mood also dented confidence in the safe-haven ‘Greenback’, as well as a larger-than-expected drop in consumer sentiment.
USD will see no major data releases today, so the currency is likely to be affected by risk appetite and rate hike bets.
Canadian Dollar (CAD) Falls Despite Rising Oil Prices
The Canadian Dollar (CAD) fell on Friday despite a recovery in crude oil prices. CAD was pulled lower by weakness in the US Dollar (USD).
The Bank of Canada’s (BoC) senior loan officer survey could prompt movement in the currency today if it hints at any future policy.
Data Releases
Nov 14th 07:30 NZD Composite PCI (Oct) 52.9
Nov 14th 07:30 NZD Services PSI (Oct) 54.1
Nov 14th 20:00 EUR Industrial Production (Sep) 0.3%
Nov 15th 00:30 CAD Senior Loan Officer Survey