Australian Dollar (AUD) Falls after Dovish RBA Minutes
The Australian Dollar (AUD) slipped on Tuesday after the release of dovish meeting minutes from the Reserve Bank of Australia (RBA). RBA policymakers considered leaving rates unchanged in December.
A continued rise in China’s Covid infections also pushed the currency lower, as the World Bank slashed its growth outlook for China.
With no significant data today, the ‘Aussie’ will likely be affected by risk appetite and China’s Covid developments.
New Zealand Dollar (NZD) Slumps as Business Confidence Hits Record Low
The New Zealand Dollar (NZD) tumbled on Tuesday. The ‘Kiwi’ fell after business confidence slumped to a record low.
A narrowing of New Zealand’s trade deficit could lend some support to NZD today if November’s figures print as forecast.
Pound (GBP) Slips as Widespread Strikes Continue
The Pound (GBP) fell yesterday amid thin trading conditions. With no significant data, the prospect of widespread industrial action kept pressure on GBP.
Downbeat forecasts for the UK housing sector also weighed on Sterling on Tuesday.
Looking ahead, the latest figures for the UK’s retail sector could pull Sterling lower today. The latest distributive trades survey is expected to drop for a second consecutive month.
Euro (EUR) Gains amid Positive ECB Comments
The Euro (EUR) firmed on Tuesday despite a healthy risk appetite in the markets. The single currency was pushed higher by a larger-than-forecast fall in German PPI.
Hawkish comments from ECB officials also supported EUR. Policymaker Francois Villeroy de Galhau stated that the Eurozone economy should avoid any ‘hard landing’.
A forecast slump in German consumer confidence could weigh on the single currency today if figures print as forecast.
US Dollar (USD) Dented by Spike in JPY
The US Dollar (USD) was pushed lower on Tuesday by a sharp appreciation in the Japanese Yen (JPY) after the Bank of Japan (BoJ) tweaked its yield curve control policy.
Fears of a global economic slowdown continued to lend support to the currency however, as well as a hawkish outlook from the Federal Reserve.
The US Dollar could see a boost from an uptick in consumer confidence figures today. Additionally, a forecast narrowing in the US current account deficit could help underpin USD.
Canadian Dollar (CAD) Bolstered by Buoyant Retail Sales
The Canadian Dollar (CAD) climbed on Tuesday. The commodity-tied ‘Loonie’ was boosted by rising oil prices and a recovery in domestic retail sales in October.
Looking ahead, a forecast slide in November’s inflation could weigh on CAD if the figures print as forecast today.
Data Releases
Dec 21st 07:45 NZD Balance of Trade (Nov) NZ$-1800m
Dec 21st 17:00 EUR GfK Consumer Confidence (Jan) -38
Dec 21st 21:00 GBP CBI Distributive Trades (Dec) -23
Dec 21st 23:30 CAD Inflation Rate (Nov) 6.7%
Dec 21st 23:30 USD Current Account (Q3) $-222bn
Dec 22nd 01:00 USD CB Consumer Confidence (Dec) 101