Australian Dollar (AUD) Loses Out as Market Mood Oscillates
On Tuesday, the Australian Dollar (AUD) began on firm footing, amid an unexpected improvement in consumer confidence.
However, the risk-sensitive currency lost progress over the session, as risk appetite became unpredictable amid ongoing concerns about conflict in the Middle East.
With macroeconomic releases in short supply, the ‘Aussie’ may trade on risk appetite again today. Will geopolitical fears keep AUD subdued?
New Zealand Dollar (NZD) Struggles amid Volatile Session
Monday saw the New Zealand Dollar (NZD) struggle to attract support, due to unstable trading conditions.
Furthermore, economic releases were few and far between for the ‘Kiwi’, limiting its possible upside.
Looking ahead for today’s session, NZD may lack direction as data remains thin on the ground.
Pound (GBP) Lacks Drive amid Economic Growth Downgrade
Yesterday saw the Pound (GBP) waver against its peers as the UK’s economic outlook darkened further.
The International Monetary Fund (IMF) downgraded its growth estimates for the UK in 2024, suggesting only 0.6% growth. This, in tandem with a wavering market mood, limited GBP’s appeal over the session.
Sterling will likely see a continued lack of impetus, which may leave it to trade listlessly over today’s session.
Euro (EUR) in Flux amid Shifting Risk Appetite
With risk appetite in flux during Tuesday’s session, the Euro (EUR) saw mixed fortunes due to its safer status.
Additionally, softness in the US Dollar (USD) brought additional cushioning to the common currency, due to their negative correlation.
Today, the Euro may struggle to find its footing during the session, owing to a lack of data releases.
US Dollar (USD) Loses Momentum following Dovish Fed Comments
Dovish comments from Federal Reserve policymakers continued to weigh on the US Dollar during Tuesday’s session.
While USD saw some support as a safe-haven currency, investors began to unwind tightening bets. Recent spikes in US Treasury bond yields prompted speculation from multiple high-profile Fed officials that future hikes may be unnecessary.
Today, the US Dollar may see renewed volatility as investors react to speeches delivered by Fed officials this morning.
Canadian Dollar (CAD) Undermined by Falling Oil Prices
The crude-linked Canadian Dollar (CAD) saw mixed trade on Tuesday, as oil prices retreated from Monday’s heights.
If oil prices remain volatile over today’s session, the ‘Loonie’ may trade in wide boundaries against its peers.
Data Releases
Oct 11th 16:00 EUR DE Inflation Rate (Sep) 4.5%
Oct 11th 18:15 USD Fed Bowman Speech
Oct 11th 22:30 USD PPI (Sep) 0.3%