Australian Dollar (AUD) Slips amid China Manufacturing Slowdown
The Australian Dollar (AUD) slipped against its rivals yesterday. Losses for the ‘Aussie’ came after data releases indicated a slowdown in China’s manufacturing sector.
The release of the Reserve Bank of Australia’s (RBA) latest minutes helped temper the ‘Aussie’s losses however. The RBA stated it had not ruled out a return to 50bps rate hikes.
With no significant data today, AUD is likely to be affected by changes in risk appetite today.
New Zealand Dollar (NZD) Boosted by Risk-On Mood
The New Zealand Dollar (NZD) was pushed higher by weakened US Dollar (USD) on Tuesday. A risk-on impulse also boosted the ‘Kiwi’.
If a bullish mood continues to prevail today then NZD exchange rates may continue to climb.
Pound (GBP) Bolstered by Signs of Wage Growth
The Pound (GBP) made strong gains on Tuesday, reaching its highest point against the US Dollar (USD) since August. Sterling climbed after employment figures this morning indicated persistent wage growth.
A rise in unemployment capped gains for GBP, however. September’s jobless rate rose to 3.6% indicating a cooler labour market.
A forecast rise in inflation could have a mixed effect today. The predicted record highs could see the Pound climb amid further rate hike bets. On the other hand, soaring prices could weigh on GBP.
Euro (EUR) Climbs amid ECB Rate Hike Bets
The Euro (EUR) benefitted from a weaker US Dollar (USD) on Tuesday. Hawkish comments from European Central Bank (ECB) policymakers increased rate hike bets and boosted EUR.
Confirmation of third quarter growth in the Eurozone also bolstered the Euro. Optimism over the war in Ukraine also lent support to the single currency.
A speech from ECB President Christine Lagarde today could prompt further gains for EUR if she maintains a hawkish tone.
US Dollar (USD) Tumbles as PPI Misses
The US Dollar (USD) fell yesterday. The safe-haven ‘Greenback’ saw losses amid a risk-on impulse in the markets.
The ‘Greenback’ then extended this decline as PPI figures rose below forecasts, indicating that US inflation is continuing to cool and leading USD investors to further scale back expectations for future interest rate hikes.
A rise in October’s retail sales could help USD to recover if the data prints as forecast today.
Canadian Dollar (CAD) Slides amid Drop in Oil Prices
The Canadian Dollar (CAD) slumped on Tuesday. The commodity-tied ‘Loonie’ was pulled lower by falling oil prices and a weaker US Dollar (USD).
If inflation prints at 6.9% as forecast, it could see losses for CAD today amid a cooling of rate hike bets.
Data Releases
Nov 16th 17:00 GBP Inflation Rate (Oct) 10.7%
Nov 16th 23:30 CAD Inflation Rate (Oct) 6.9%
Nov 16th 23:30 USD Retail Sales (Oct) 1%
Nov 17th 00:50 USD Fed Williams Speech
Nov 17th 01:00 EUR ECB President Lagarde Speech