Australian Dollar (AUD) Slides amid Cooling Inflation
The Australian Dollar (AUD) fell sharply yesterday after Australia’s latest consumer price index indicator showed a steeper-than-expected cooldown in inflation last month.
The softer reading dampened Reserve Bank of Australia (RBA) interest rate hike bets, thereby weighing heavily on the ‘Aussie’.
Turning to today, a lack of market-moving data may leave the risk-sensitive Australian Dollar to trade on risk appetite.
New Zealand Dollar (NZD) Surges on Hawkish RBNZ
The New Zealand Dollar (NZD) leapt higher yesterday after the Reserve Bank of New Zealand (RBNZ) strongly signalled that another rate hike remains on the cards.
The ‘Kiwi’ then trimmed its gains during the European trading session, with the currency seemingly suffering a bout of profit-taking.
This morning, the latest business confidence figures are due out. Could a drop in confidence this month see NZD struggle?
Pound (GBP) Underpinned by BoE Expectations
Although a lack of UK economic data left the Pound (GBP) exposed to volatility yesterday, Sterling was able to find some success during the European trading session.
Recent hawkish comments from Bank of England (BoE) officials continued to underpin the Pound. This saw GBP edge higher against some of its weaker rivals.
Looking forward, UK economic data remains in short supply today, potentially leaving Sterling exposed to further volatility.
Euro (EUR) Falls as German Inflation Slows
The Euro (EUR) weakened yesterday after German inflation cooled more than expected this month.
With prices pressures easing in the Eurozone’s largest economy, investors began betting on interest rate cuts from the European Central Bank (ECB). This dragged on the common currency.
This evening, the CPI for the wider Eurozone is due out. If it shows that inflation in the bloc continued to cool in November, EUR could face fresh selling pressure.
US Dollar (USD) Recovers from Multi-Month Lows
The US Dollar (USD) struck multi-month lows yesterday before clawing back some losses as investors bought the dip.
Stronger-than-forecast US GDP overnight seemed to have a mixed impact on USD. While the data cheered markets, thereby pressuring the safe-haven US Dollar, it also dampened expectations for Federal Reserve rate cuts.
Tonight, the Fed’s preferred measure of inflation is scheduled for release. If the core PCE price index cools as expected, USD exchange rates could tumble.
Canadian Dollar (CAD) Wavers as Oil Prices Fluctuate
The crude-linked Canadian Dollar (CAD) faced fresh volatility yesterday as oil prices traded in a wide range.
Later on, we could see the ‘Loonie’ lose ground as Canada’s third-quarter GDP results are expected to show that the economy stagnated.
Nov 30th 10:00 NZD ANZ Business Confidence (Nov) 15
Nov 30th 20:00 EUR Inflation Rate (Nov) 2.7%
Nov 30th 23:30 CAD GDP Growth Rate (Q3) 0%
Nov 30th 23:30 EUR ECB President Lagarde Speech
Nov 30th 23:30 USD Core PCE Price Index (Oct) 3.5%