Australian Dollar (AUD) Falls as China’s Covid-19 Cases Surge
The Australian Dollar (AUD) slipped yesterday amid a retreat in global risk appetite. A further surge in China’s Covid-19 case levels also weighed on the ‘Aussie’.
On the other hand, the currency was underpinned by strong jobs data. A rise in iron ore prices also lent support to AUD.
With no significant data today, the ‘Aussie’ is likely to be affected by any changes in risk appetite.
New Zealand Dollar (NZD) Slips amid Risk-Off Mood
The New Zealand Dollar (NZD) fell on Thursday. The ‘Kiwi’ was pulled lower by a risk-off mood and a strong US Dollar (USD).
In the absence of any NZD data, movement in the New Zealand Dollar is likely to remain tied to risk appetite today.
Pound (GBP) Slumps after Autumn Budget Statement
The Pound tumbled on Thursday after the reveal of the UK government’s Autumn statement. Chancellor Jeremy Hunt unveiled tax increases equating to roughly £55bn.
Dire forecast for the UK economy released by the Office for Budget Responsibility (OBR) alongside the budget pushed GBP lower. The OBR forecast a 7% fall in living standards over the next two years, wiping out 8 years of growth.
A forecast uptick in October’s retail sales could help to stem Sterling’s losses today.
Euro (EUR) Dips as ECB Surprises with Dovish Turn
The Euro (EUR) firmed against most of its rivals yesterday. A risk-off market mood helped the single currency to make climb.
EUR’s gains were capped by a dovish tilt from the European Central Bank (ECB), however. Cautious comments from policymaker Robert Holzmann and a downward revision in the Eurozone’s final inflation reading weighed on the Euro.
A speech from ECB President Christine Lagarde could add to EUR’s downturn today if she takes a dovish stance.
US Dollar (USD) Bolstered by Hawkish Fed Comments
The US Dollar (USD) made strong gains yesterday. The safe-haven ‘Greenback’ benefitted from a risk-off trading environment on Thursday. Additionally, a below-forecast increase in jobless claims boosted the currency off the back of a tight labour market.
Hawkish comments from the Federal Reserve’s James Bullard also bolstered USD. Bullard signalled that further interest rate hikes would be necessary to curb soaring inflation.
Speeches from other Fed policymakers today could help the currency to firm today.
Canadian Dollar (CAD) Rises Despite Fall in Oil Prices
The Canadian Dollar (CAD) climbed against many of its peers on Thursday. CAD was boosted by a resurgent US Dollar (USD), although gains were capped by a fall in oil prices.
An uptick in PPI figures could boost the currency if figures print as forecast today.
Data Releases
Nov 18th 04:45 USD Fed Kashkari Speech
Nov 18th 17:00 GBP Retail Sales (Oct) 0.3%
Nov 18th 18:30 EUR ECB President Lagarde Speech
Nov 18th 23:30 CAD PPI (Oct) 0.4%