Australian Dollar (AUD) Limited by Bearish Market Impulse
The risk-sensitive Australian Dollar (AUD) languished near multi-week lows last Friday, after slumping following a hawkish speech from Federal Reserve Chair Jerome Powell.
Investors remained cautious for much of the session, which served to restrict the ‘Aussie’ amid a lack of wider data.
Turning to today, risk appetite could continue to drive the Australian Dollar amid an ongoing lack of economic data.
New Zealand Dollar (NZD) Dampened by Downbeat PMI
Following a worse-than-expected manufacturing PMI, the New Zealand Dollar (NZD) failed to find its footing last Friday.
October’s index printed at 42.5, significantly below the expected 45, revealing a deepening contraction in factory activity. Additionally, the fallout from Fed Chair Powell’s hawkish speech appeared to crush the market mood, bringing risk-averse trade.
NZD exchange rates could become volatile today, as investors react to October’s services PMI data.
Pound (GBP) Undermined by Stagnant UK Economy
Signs of stagnation in the UK economy prevented the Pound (GBP) from establishing a clear trajectory at the end of last week.
Although above forecasts of a 0.1% contraction, the UK’s third-quarter GDP growth rate printed at a flat 0%. This raised concerns about the UK’s struggling economy, which served to cap GBP exchange rates.
Sterling may be left exposed to shifts in the market mood today, due to a lack of data impetus.
Euro (EUR) Drained by Downbeat Eurozone Outlook
Last Friday, the Euro (EUR) traded mostly sideways amid pared-back European Central Bank (ECB) rate hike bets.
Investors continued to digest downbeat speeches from ECB policymakers, which left the common currency rudderless.
With little in the way of economic releases, the Euro may be left rangebound during today’s session.
US Dollar (USD) Wavers amid Mixed Consumer Data
The US Dollar (USD) endured tepid trade last Friday, receding after Fed Chair Powell’s hawkish speech brought initial gains.
Mixed results from the University of Michigan’s consumer sentiment index pressured the ‘Greenback’. But while falling morale capped USD’s upside, inflation expectations printed above forecast, keeping the ‘Greenback’ afloat.
Overnight, the US Dollar could gain ground if Federal Reserve Governor Lisa Cook echoes Powell’s recent hawkish stance.
Canadian Dollar (CAD) Underpinned by Continued Oil Recovery
The crude-linked Canadian Dollar (CAD) enjoyed modest support last Friday courtesy of rising oil prices. However, crude prices were significantly lower on a weekly basis, and thus limited CAD’s potential.
The ‘Loonie’ may continue to trade in tandem with oil prices today, as data remains scarce.
Data Releases
Nov 13th 07:30 NZD Services NZ PSI (Oct) 49.5
Nov 13th 23:50 USD Fed Cook Speech