Australian Dollar (AUD) Falls Rise in China Covid Cases
The Australian Dollar (AUD) slipped yesterday despite a return of global risk appetite. Rising Covid-19 case levels in China acted as headwinds for the ‘Aussie’, however.
The imposition of further curbs by the Chinese government and reports of unrest at the Zhengzhou iPhone factory added to slowdown fears.
Shifts in risk appetite and further Covid rises in China may continue to dictate movement in AUD exchange rates today.
New Zealand Dollar (NZD) Jumps after RBNZ Interest Rate Decision
The New Zealand Dollar (NZD) was boosted by Wednesday’s record-high interest rate hike from the Reserve Bank of New Zealand (RBNZ).
A 75bps increase saw the RBNZ raise interest rates to their highest levels since 2009.
In the absence of any notable domestic data, NZD exchange rates may return to being driven by market risk appetite today.
Pound (GBP) Climbs Despite Private Sector Contraction
The Pound (GBP) climbed on Wednesday. Sterling found support Bank of England (BoE) rate hike bets. A below-forecast contraction in the UK’s private sectors also bolstered GBP.
The PMI data also capped gains for the Pound, however. The PMIs indicated the fastest fall in economic activity since January 2021 which added to signs of a recession.
A drop in industrial trends orders could push GBP lower if figures print as forecast. A speech from BoE policymaker Catherine Mann could underpin Sterling, however.
Euro (EUR) Slips amid Risk-On Mood
The Euro (EUR) slid on Wednesday amid a risk-on market mood. A contraction in German and Eurozone private sectors weighed on the single currency.
On the other hand, the Euro was underpinned by hawkish comments from European Central Bank (ECB) Vice-President Luis de Guindos.
An uptick in German business confidence could push EUR higher today. The ECB’s monetary policy meeting accounts could also boost the single currency.
US Dollar (USD) Drops as Markets Pare Back Fed Rate Hike Bets
The US Dollar (USD) fell yesterday as markets continued to pare back their bets on further interest rate hikes from the Federal Reserve. An above-forecast rise in durable goods orders added to this speculation.
A surprise rise in jobless claims pointed to cooling labour market, also prompting a drop in the currency. Finally, PMI figures confirming a contraction across all US private sectors pulled USD lower.
The latest FOMC minutes could boost the US Dollar today if investors pick up on any hawkish signals.
Canadian Dollar (CAD) Slumps as Oil Price Tumble
The Canadian Dollar (CAD) dropped on Wednesday. The commodity-tied ‘Loonie’ was pulled lower by tumbling crude oil prices.
Expect to see CAD exchange rates extend this decline if oil prices continue to plunge today.
Data Releases
Nov 24th 05:00 USD FOMC Minutes
Nov 24th 19:00 EUR Ifo Business Climate (Nov) 85
Nov 24th 21:00 GBP CBI Industrial Trends Orders (Nov) -8
Nov 24th 22:30 EUR ECB Monetary Policy Meeting Accounts
Nov 24th 23:45 GBP BoE Mann Speech