Australian Dollar (AUD) Falls as Chinese Covid Cases Surge
The Australian Dollar (AUD) fell on Monday amid a risk-off mood in the markets. The ‘Aussie’ was pulled lower by Covid spikes across China.
Bets on a dovish rate hike pace from the Reserve Bank of Australia (RBA) also weighed on AUD. On the other hand, the currency’s losses were limited by an uptick in iron ore prices.
A speech from RBA Governor Philip Lowe could weigh on the ‘Aussie’ today, if he maintains a cautious stance.
New Zealand Dollar (NZD) Drops amid Risk-Off Mood
The New Zealand Dollar (NZD) slipped yesterday. The ‘Kiwi’ was pulled lower by China’s Covid surge and its correlation to the Australian Dollar (AUD).
Looking ahead, a forecast narrowing of the country’s trade deficit could boost NZD exchange rates this morning.
Pound (GBP) Slides as UK’s Downbeat Outlook Worsens
The Pound (GBP) slipped on Monday. Markets continued to digest last week’s Autumn statement and confirmation of a recession. The UK’s poor outlook continued to weigh on Sterling.
A negative outlook from UK business heads also kept the pressure on GBP exchange rates.
With no significant data today, Sterling may continue to be driven by the UK’s economic outlook.
Euro (EUR) Falls as Attacks on Zaporizhzhia Plant Continue
The Euro (EUR) fell against its peers on Monday despite a risk-off mood. Fears of further escalations in the Russia-Ukraine conflict weighed on the single currency.
EUR also saw its gains capped by signs that Eurozone inflation may have peaked as German PPI fell unexpectedly.
An improvement in Eurozone consumer confidence could help to revive the Euro later today if figures print as forecast.
US Dollar (USD) Pushed Higher by Retreat in Risk Appetite
The US Dollar (USD) benefitted from retreating global risk appetite on Monday. China’s latest Covid surge and further escalation in the Russia-Ukraine conflict helped bolster the appeal of the safe-haven ‘Greenback’.
Hawkish signals from Federal Reserve officials also lent support to USD. Multiple policymakers have recently signalled that a 75bps rate hike could be on the horizon.
Speeches from Fed board members could push USD higher if they give any hawkish signals.
Canadian Dollar (CAD) Climbs Despite Oil Price Fall
The Canadian Dollar (CAD) rose on Monday. CAD was bolstered by a strong US Dollar (USD), although gains were capped by a fall in oil prices.
An uptick in retail sales today could push CAD higher. Any shifts in oil prices could also affect the currency.
Data Releases
Nov 22nd 07:45 NZD Balance of Trade (Oct) NZ$-1400m
Nov 22nd 17:00 AUD RBA Gov Lowe Speech
Nov 22nd 23:30 CAD Retail Sales (Sep) -0.5%
Nov 23rd 01:00 EUR Consumer Confidence (Nov) -26
Nov 23rd 03:00 CAD BoC Gov Rogers Speech