Australian Dollar (AUD) rises amid thawing Sino-Australian trade
Monday saw the Australian Dollar (AUD) strengthen amid signs of thawing trade relations between China and Australia.
Australian Trade Minister Don Farrell stated he was confident that China’s tariffs on Australian wine would end soon, bringing cheer to investors.
Turing to today, AUD could see fresh volatility as investors pore over the latest Reserve Bank of Australia (RBA) meeting minutes. Could hints that the RBA’s hiking cycle is over dent the ‘Aussie’?
New Zealand Dollar (NZD) strengthens as service sector returns to growth
The New Zealand Dollar (NZD) gathered pace on Monday following a forecast-beating service sector index.
In November, the vital sector returned to growth, shoring up investor confidence in the New Zealand economy.
The ‘Kiwi’ may see rocky trade today, as markets analyse the latest New Zealand trade data.
Pound (GBP) clipped amid BoE rate cut speculation
Owing to a lack of data releases, the Pound (GBP) weakened on Monday due to growing belief in imminent interest rate cuts.
Markets believe the Bank of England (BoE) will cut rates at least four times in 2024, with these expectations weighing on Sterling.
Continued adjustment of these bets may drive GBP today, due to a continued lull in market-moving data releases.
Euro (EUR) firms despite deteriorating German business outlook
Despite a decrease in German business sentiment, the Euro (EUR) gained ground over the course of Monday’s trade.
The IFO business climate index showed an unexpected decline in November, outlining the continued risk of economic slowdown. However, weakness in the US Dollar (USD) saw EUR gain ground regardless, due to the euro’s negative correlation with USD.
Eurozone data releases are few and far between today, which may keep EUR trapped in a narrow range.
US Dollar (USD) muddled amid Fed rate cut bets
Mixed trade struck the US Dollar at the beginning of the week, as a light data calendar shifted investor focus to the Federal Reserve’s path forward.
Despite pushback from Fed officials, markets anticipate that the central bank will begin cutting interest rates in March.
The short supply of releases is set to continue tomorrow, which may generate further turbulence for the ‘Greenback’.
Canadian Dollar (CAD) unable to capitalise on rising oil prices
Despite a strong recovery in oil prices, the crude-linked Canadian Dollar (CAD) weakened on Monday due to a struggling US Dollar.
Canada’s latest inflation data for November is due tonight. With both headline and core rates expected to have decelerated, CAD may weaken.
Data Releases
Dec 19th 07:45 NZD Balance of Trade (Nov) NZ$-1.4bn
Dec 19th 10:30 AUD RBA Meeting Minutes
Dec 19th 23:30 CAD Inflation Rate (Nov) 2.9%