Australian Dollar (AUD) Slips amid China Worries
The Australian Dollar (AUD) stumbled out of the gate this week, as concerns about China’s indebted property sector resurfaced.
With the ‘Aussie’ seen as both a risk-sensitive currency and a proxy for the Chinese economy, the country’s property market crisis weighed on AUD.
The Reserve Bank of Australia (RBA) holds its annual conference on inflation today. Any hints that stubborn inflation could push the RBA to start raising interest rates again may boost the ‘Aussie’.
New Zealand Dollar (NZD) Rebounds despite Risk-Off Mood
The New Zealand Dollar (NZD) initially slipped alongside the ‘Aussie’ yesterday, with the souring market mood denting the ‘Kiwi’.
NZD exchange rates then rallied during the European session, without a clear catalyst for the movement. Resilience in the New Zealand economy, as seen in last week’s GDP data, may have underpinned the currency.
In the absence of any economic data releases today, the ‘Kiwi’ could be driven by risk appetite. Will a persistently gloomy mood see NZD struggle?
Pound (GBP) Remains Weak amid Souring Sentiment
The Pound (GBP) continued to weaken yesterday as the bearish mood in markets weighed on the increasingly risk-sensitive UK currency.
Mixed retail sales data failed to lend Sterling much support. Although new data from the Confederation of British Industry (CBI) beat forecasts, it still showed a notable decline in retail trade.
British economic data is in short supply today, which could leave Sterling to languish near recent lows.
Euro (EUR) Falls amid Muddled ECB Messaging
The Euro (EUR) slid yesterday as investors responded to a flurry of speeches from European Central Bank (ECB) policymakers.
Although some officials sounded more hawkish than others, there were plenty of indications that interest rates may have peaked. This pulled the Euro lower.
This evening, ECB Chief Economist Philip Lane is due to speak. Could more dovish comments weigh on the Euro?
US Dollar (USD) Soars amid Global Economic Fears
The safe-haven US Dollar (USD) climbed to ten-month highs yesterday as risk aversion swept through markets.
Fears around elevated global borrowing costs, paired with anxiety over China’s ailing property sector and a potential government shutdown in the US, saw fearful investors flock to the safer US Dollar.
Looking ahead to tonight, an expected decline in US consumer confidence could dent the ‘Greenback’.
Canadian Dollar (CAD) Supported by Strong USD
The Canadian Dollar (CAD) gained ground yesterday, with CAD enjoying its positive correlation with USD. Strength in oil prices also underpinned the commodity-linked ‘Loonie’.
With no market-moving Canadian data due out today, crude prices could continue to drive CAD exchange rates.
Data Releases
Sep 26th 11:00 AUD RBA 2023 Conference on Inflation
Sep 26th 17:00 EUR ECB Lane Speech
Sep 27th 00:00 USD CB Consumer Confidence 105.6