Australian Dollar (AUD) Bolstered by Easing of China’s Covid Measures
The Australian Dollar (AUD) climbed yesterday. The easing of China’s Covid-19 testing regimen lent support to AUD.
On the other hand, a continued increased in Covid-19 case levels kept pressure on the ‘Aussie’.
If the minutes from the Reserve Bank of Australia’s (RBA) latest meeting confirm a rate hike slowdown, then it could see the ‘Aussie’ fall today.
New Zealand Dollar (NZD) Drops amid Resurgent USD
The New Zealand Dollar (NZD) tumbled on Monday. A stronger US Dollar (USD) and cautious market mood weighed on the ‘Kiwi’.
A fourth consecutive downturn in the global dairy trade price index could keep pressure on NZD today.
Pound (GBP) Falls as UK Outlook Worsens
The Pound (GBP) fell on Monday as the UK’s long-term outlook continued to darken. Pessimistic comments from former Bank of England (BoE) policymaker Michael Saunders weighed on GBP.
Additionally, a 13-year low reading of business confidence prompted losses in Sterling. Bets on the currency were also subdued ahead of Thursday’s Autumn Statement from the UK government.
If employment data prints as forecast today, the evidence of a tight labour market could boost Sterling.
Euro (EUR) Boosted by Above-Forecast Industrial Output
The Euro (EUR) rose on Monday after better-than-expected figures for the Eurozone’s industrial sector. Factory output grew by 0.9% in September.
Speculation that tensions between Russia and Ukraine could be easing also lent support to the single currency.
A forecast slowdown in Eurozone growth and downturn in German economic sentiment could push EUR lower today.
US Dollar (USD) Gains amid Hawkish Fed Comments
The US Dollar (USD) made strong gains amid a mixed market mood. Positive movements for US Treasury bond yields lent support to the safe-haven ‘Greenback’.
Hawkish comments from Federal Reserve policymakers were the main driver of USD’s movements on Monday. Fed board member Christopher Waller signalled that the Fed had a ‘ways to go’ before slowing their pace of policy tightening.
If PPI remains at 0.4% in October, it could boost Fed rate hike bets and the US Dollar today.
Canadian Dollar (CAD) Climbs Despite Oil Price Slide
The Canadian Dollar (CAD) ticked higher over the course of Monday’s session. CAD was supported by a strong US Dollar (USD), although saw gains capped amid sliding oil prices.
A forecast drop in sales for the country’s manufacturing sector could weigh on CAD today.
Data Releases
Nov 15th 10:30 AUD RBA Meeting Minutes
Nov 15th 17:00 GBP Unemployment Rate (Sep) 3.5%
Nov 15th 10:30 GBP Average Earnings incl. Bonus (Sep) 5.9%
Nov 15th 22:00 EUR GDP Growth Rate (Q3) 0.2%
Nov 15th 20:00 EUR German ZEW Economic Sentiment Index (Nov) -50
Nov 15th 23:30 USD PPI (Oct) 0.4%