Australian Dollar (AUD) Drops Despite Strong Wage Growth
The Australian Dollar (AUD) fell yesterday amid a retreat in global risk appetite. A continued surge in China’s Covid-19 case levels also weighed on the ‘Aussie’.
On the other hand, AUD drew support from a 1% jump in third quarter wages. Additionally, signals that the Reserve Bank of Australia (RBA) should push ahead with further interest rate hikes also supported the currency.
A forecast uptick in October’s unemployment rate could push AUD exchange rates lower.
New Zealand Dollar (NZD) Firms as Dairy Prices Soar
The New Zealand Dollar (NZD) firmed on Wednesday despite a risk-off mood. A weaker US Dollar (USD) and rise in the global dairy trade price index bolstered the ‘Kiwi’.
With no significant data today, NZD exchange rates are likely to be affected by risk appetite.
Pound (GBP) Drops as Inflation Hits Highest Level since 1981
The Pound (GBP) fell on Wednesday. Above-forecast inflation figures weighed on Sterling as experts highlighted the impact soaring prices would have on the most vulnerable households.
Comments from BoE Governor Andrew Bailey later in the day had a mixed effect on the currency. Bailey’s confirmation of further rate hikes helped limit Sterling’s losses, although confirmation of a recession contributed to GBP’s losses.
The UK government’s Autumn Statement could weigh on the Pound if investors feel the proposed measures may limit growth.
Euro (EUR) Gains amid Mixed ECB Rhetoric
The Euro (EUR) climbed yesterday. A risk-off trading sentiment boosted the single currency, although EUR remained volatile after a missile strike landed across the Polish border.
The Euro was pushed higher further hawkish comments from European Central Bank (ECB) policymakers on Wednesday. Dovish comments from other ECB board members limited gains for EUR, however.
The final reading of October’s Eurozone inflation could push the Euro higher if it confirms a rise to 10.7%.
US Dollar (USD) Edges Higher as Retail Sales Beat Forecasts
The US Dollar (USD) staged a mild recovery on Wednesday. A risk-off trading sentiment as well as an above-forecast rise in October’s retail sales supported USD.
The continued paring back of bets on further interest rate hikes from the Federal Reserve weighed on USD, however.
Speeches from Fed policymakers today could prompt movement in the US Dollar. Additionally, another strong gain in jobless claims could keep USD suppressed.
Canadian Dollar (CAD) Ticks Upward as Inflation Holds Steady
The Canadian Dollar (CAD) edged higher on Wednesday after inflation in October held at 6.9%. A fall in oil prices capped gains for the commodity-tied ‘Loonie’, however.
Movement in CAD exchange rates is likely to remain tied to oil price dynamics today.
Data Releases
Nov 17th 01:00 EUR ECB President Lagarde Speech
Nov 17th 10:30 AUD Unemployment Rate (Oct) 3.6%
Nov 17th 20:00 EUR Inflation Rate (Oct) 10.7%
Nov 17th 22:30 GBP UK Autumn Statement
Nov 17th 23:30 USD Initial Jobless Claims (12/Nov) 225,000