Australian Dollar (AUD) Wobbles despite Hawkish RBA Minutes
Yesterday, the Australian Dollar (AUD) saw mixed trade over the course of the session. However, the latest Reserve Bank of Australia (RBA) meeting minutes cushioned the ‘Aussie’.
The RBA sounded hawkish in these minutes, and the door was left open for further interest rate hikes if needed.
Turning to this evening, RBA Governor Michele Bullock is due to speak. Could hawkish remarks lift AUD?
New Zealand Dollar (NZD) Rises as Risk Appetite Improves
During Tuesday’s session, the New Zealand Dollar (NZD) climbed against its safer peers due to a risk-on market impulse.
Renewed optimism around China’s economic outlook lifted the market mood, propelling the ‘Kiwi’ upward.
Today, NZD exchange rates could trade without a clear direction due to a lack of data releases.
Pound (GBP) Pushed Higher by Hawkish BoE Comments
Over yesterday’s session, the Pound (GBP) managed to firm following hawkish comments from Bank of England (BoE) policymakers.
During a testimony to parliament’s Treasury committee, BoE rate-setters expressed concerns around persistent inflation and hinted that further tightening was on the table if needed.
Later tonight, UK Chancellor Jeremy Hunt unveils the Autumn Statement. If his budget brightens the UK’s economic outlook, Sterling may surge.
Euro (EUR) Stumbles amid Bullish Trade
The Euro (EUR) struggled to attract support yesterday, due to a lack of impactful data releases.
As such, the common currency was left vulnerable to the improving market mood, with its safer status undermining its appeal.
Eurozone economic data remains thin on the ground today, which may leave EUR exchange rates subdued once again.
US Dollar (USD) Dampened by Upbeat Market Mood
Owing to a cheery market mood on Tuesday, the safe-haven US Dollar (USD) fell against its more risk-sensitive peers.
Additionally, with a lull in data releases, USD investors had little reason to support the ‘Greenback’ during the session.
The US Dollar may see fresh volatility today, as investors pore over the latest Federal Reserve meeting minutes. However, tonight’s initial jobless claims data could lift USD if claims tick lower, as expected.
Canadian Dollar (CAD) Subdued by Cooling Inflation
The Canadian Dollar (CAD) saw muted trade yesterday, as headline inflation cooled in line with forecasts. However, core inflation printed hotter than expected, cushioning CAD.
With data in short supply, oil price volatility may be the primary driver of movement for the crude-linked ‘Loonie’ today.
Nov 22nd 18:35 AUD RBA Bullock Speech
Nov 22nd 22:30 GBP Autumn Statement
Nov 22nd 23:30 USD Initial Jobless Claims (18/Nov) 225,000
Nov 22nd 23:30 USD Durable Goods Orders (Oct) -3.1%