Australian Dollar (AUD) Bolstered by Hawkish RBA Comments
The Australian Dollar (AUD) was pushed higher by a return of risk appetite yesterday. The ‘Aussie’ was also boosted by hawkish signals from Reserve Bank of Australia Governor Philip Lowe.
Covid-19 outbreaks across China kept a lid on the ‘Aussie’s upside potential, however.
A forecast contraction in Australia’s private sectors could push AUD lower if figures print as forecast today.
New Zealand Dollar (NZD) Climbs amid Risk-On Mood
The New Zealand Dollar (NZD) was boosted by a risk-on market mood on Tuesday. The ‘Kiwi’ also found support from hawkish bets ahead of the Reserve Bank of New Zealand’s (RBNZ) latest policy meeting.
Investors will be keenly focused on the RBNZ interest rate decision today. A 75bps increase could see gains for NZD.
Pound (GBP) Mixed amid Rise in Government Borrowing
The Pound (GBP) edged higher against safer peers amid a positive risk appetite on Tuesday. Sterling was also supported by bets on further interest rate hikes from the Bank of England (BoE).
The UK economy’s poor outlook saw GBP slump against its riskier rivals, however. Data indicating a rise in government borrowing added to downbeat forecasts.
Looking ahead, the Pound could face headwinds today as the UK’s latest PMI figures are expected to report that the contraction in the private sector gathered pace this month.
Euro (EUR) Fall as Forecasts Point to Drastic Slowdown in Europe
The Euro (EUR) dropped yesterday amid a risk-on market mood. Forecasts that the Europe will be hit hardest by the imminent global slowdown may have also prompted losses in EUR.
Bets on a 50bps interest rate hike from the European Central Bank (ECB) prevented drastic losses for EUR, however.
A contraction across the Eurozone’s private sectors could push the Euro lower today. Another negative reading is likely to stoke concerns over fourth quarter growth in the Eurozone.
US Dollar (USD) Slips amid Risk-Positive Trading
The US Dollar (USD) slipped on Tuesday. The safe-haven ‘Greenback’ struggled amid a return of global risk appetite.
On the other hand, the currency’s losses were limited by market bets on further interest rate hikes from the Federal Reserve.
The publication of the minutes from the Fed’s latest policy meeting will be the focus for USD investors today. With the US Dollar potentially rising overnight if they indicate the US central bank is open to another 75bps hike in December.
Canadian Dollar (CAD) Boosted by Rising Oil Prices
The Canadian Dollar (CAD) firmed on Tuesday. The commodity-tied ‘Loonie’ benefitted from a rise in crude oil prices. Gains for CAD were capped by a drop in retail sales, however.
Oil price dynamics are likely to continue to drive movement in the Canadian Dollar today.
Data Releases
Nov 23rd 08:00 AUD S&P Global Services PMI (Nov) 48.6
Nov 23rd 11:00 NZD RBNZ Interest Rate Decision 4.25%
Nov 23rd 19:00 EUR S&P Global Services PMI (Nov) 48
Nov 23rd 19:30 GBP S&P Global/CIPS Services PMI (Nov) 48
Nov 23rd 23:30 USD Durable Goods Orders (Oct) 0.4%
Nov 23rd 23:30 USD Initial Jobless Claims (19/Nov) 225,000
Nov 24th 04:30 USD FOMC Minutes