Australian Dollar (AUD) Subdued amid Risk-Off Mood
The Australian Dollar (AUD) stumbled on Friday as risk appetite waned in the wake of the latest US inflation rate reading.
AUD was then able to claw back some losses during the European trading session, although the ‘Aussie’ remained down on the week.
This morning, Reserve Bank of Australia (RBA) Assistant Governor Brad Jones is due to speak. Could dovish remarks dent the ‘Aussie’?
New Zealand Dollar (NZD) Weakens as PMI Disappoints
The New Zealand Dollar (NZD) also faced selling pressure at the end of last week’s session, as the gloomy market mood weighed on the ‘Kiwi’.
New Zealand’s latest manufacturing PMI also unexpectedly showed a deepening contraction in factory activity, adding to the pressure on NZD.
Today, New Zealand’s services PMI could continue to drive movement through the morning. Later, risk appetite could be the defining factor behind NZD movement.
Pound (GBP) Slips as UK Outlook Clouds Over
The Pound (GBP) softened at the end of last week as fresh concerns about the UK economy dampened GBP’s appeal.
New data showed that company insolvencies in England and Wales rose 17% year-on-year in September. Meanwhile, UK Chancellor Jeremy Hunt warned of ‘challenges’ ahead and ‘difficult decisions’ to be made in his upcoming Autumn Statement.
Looking ahead, Bank of England (BoE) Chief Economist Huw Pill is due to speak this evening. Any hints that the bank is open to further rate hikes could lend Sterling support.
Euro (EUR) Undermined by USD Strength
The Euro (EUR) was mixed on Friday, wavering slightly lower due to the currency’s negative trading relationship with a rising US Dollar (USD).
A stronger-than-forecast recovery in Eurozone industrial production lent EUR some support, while dovish comments from European Central Bank (ECB) President Christine Lagarde weighed on the Euro.
Turning to today’s session, the Eurozone’s balance of trade data this evening could impact EUR. With the bloc’s trade surplus expected to have nearly doubled in August, the single currency could gain ground.
US Dollar (USD) Strengthens as Mood Sours
The US Dollar firmed at the end of last week as anxious investors sought out safer currencies.
Worries about higher US interest rates and the escalating violence in the Middle East soured the market mood, thereby boosting the safe-haven ‘Greenback’.
Amid a lack of American economic data today, the US Dollar could trade on risk appetite. Will a gloomy global outlook see USD rise even higher?
Canadian Dollar (CAD) Gains as Oil Prices Climb
The crude-linked Canadian Dollar (CAD) moved higher on Friday, with rising oil prices and a strong US Dollar both boosting the ‘Loonie’.
Market-moving Canadian data is absent today. As a result, oil price dynamics may drive CAD movement.
Data Calendar
Oct 16th 09:15 AUD RBA Jones Speech
Oct 16th 18:30 GBP BoE Pill Speech
Oct 16th 19:00 EUR Balance of Trade (Aug) €12.5bn