Australian Dollar (AUD) Firms amid Recovering Market Mood
Owing to a tentatively upbeat market mood, the risk-sensitive Australian Dollar (AUD) firmed against some of its peers last Friday.
Furthermore, continued bets on further interest rate hikes from the Reserve Bank of Australia (RBA) yielded additional tailwinds.
Market dynamics are likely to remain the core catalyst of movement for the ‘Aussie’ today. Could bullish trade boost AUD?
New Zealand Dollar (NZD) Boosted by Upbeat Trade
Last Friday, the New Zealand Dollar (NZD) strengthened against most major peers as the risk-sensitive currency enjoyed the cautiously optimistic mood.
Global risk appetite rose amid news that the Chinese government would provide more support to the country’s ailing property sector.
Risk sentiment could continue to drive NZD rates today, as a short supply of data leaves the risk-sensitive ‘Kiwi’ vulnerable to the market mood.
Pound (GBP) Directionless amid Pared Back BoE Bets
During Friday’s session, the Pound (GBP) lacked direction as investors pared back their bets on further policy tightening from the Bank of England (BoE).
The BoE’s latest decision maker panel found that inflation expectations were falling amongst UK CFOs, adding fuel to expectations of an imminent pause.
This evening, BoE Chief Economist Huw Pill is scheduled to speak. Hawkish remarks could boost Sterling.
Euro (EUR) Undermined by Vanishing ECB Tightening Bets
The Euro (EUR) stumbled last Friday, as European Central Bank (ECB) rate hike bets continued to dwindle.
Markets now anticipate as little as 8bps of tightening in the near future, with a pause firmly on the cards at this month’s meeting. The Eurozone’s economic outlook remains gloomy, and inflation appears to have turned a corner.
A lack of data is on the cards today, which could mean the common currency is unable to find a clear direction over the session.
US Dollar (USD) Softens amid Improving Market Sentiment
During last Friday’s session, the US Dollar (USD) endured a loss of support as risk appetite began to recover.
As such, the safe-haven ‘Greenback’ was unable to gain ground against its peers.
With little data catalysts to drive movement, the ‘Greenback’ could trade listlessly during today’s session.
Canadian Dollar (CAD) Strides amid Strong Jobs Data
On the back of a surprise hold in the unemployment rate, the Canadian Dollar (CAD) rallied last Friday.
Owing to a light data calendar, the commodity-linked ‘Loonie’ may trade in tandem with oil price dynamics today.
Data Releases
Sep 11th 18:00 GBP BoE Pill Speech