Australian dollar (AUD) steady ahead of RBA speech
The Australian dollar (AUD) traded steadily as markets awaited a speech from the RBA’s Chief Economist, Sarah Hunter, today at the Citi Australia & New Zealand Investment Conference.
Although details on the speech’s content are limited, market participants will be closely analysing it for insights into the near-term policy outlook.
New Zealand dollar (NZD) weakened on Q3 CPI data
The New Zealand dollar (NZD) slipped after the latest quarterly consumer price index (CPI) report showed weaker-than-expected inflation.
The annual CPI came in at 5.6%, down from 6% in Q2, as price pressures eased across various sectors. The data has increased speculation about potential monetary policy adjustments by the Reserve Bank of New Zealand (RBNZ).
US dollar (USD) uncertain amid lukewarm market mood
The safe-haven US dollar (USD) traded without a clear direction yesterday amid a mixed market mood.
In addition, a lack of market-moving American economic data also contributed to the currency’s uncertain movement.
Looking ahead, impactful US data remains in short supply. Therefore, the ‘greenback’ could once again trade in relation to market risk dynamics.
Pound (GBP) firms following UK jobs data
The pound (GBP) strengthened yesterday as an unexpected drop in UK unemployment cheered GBP investors.
The latest labour market overview showed that the jobless rate fell from 4.1% to 4% in the three months to August, rather than holding steady. However, slowing wage growth capped the pound’s upside potential.
Euro (EUR) wavers despite positive German data
The euro (EUR) fluctuated yesterday, as European Central Bank (ECB) rate cut bets offset some upbeat German data.
Germany’s latest ZEW economic sentiment index for October beat forecasts to show a better-than-expected recovery in morale. However, the likelihood of an ECB cut at tomorrow’s meeting saw EUR unable to hold its initial gains.
The common currency may see muted movement today amid a lack of data. However, a speech from ECB President Christine Lagarde this evening could affect EUR exchange rates, with any dovish hints potentially denting the euro.
Canadian dollar (CAD) volatile as inflation misses forecasts
Weaker-than-forecast inflation data from Canada saw the Canadian dollar (CAD) stumble yesterday. However, CAD quickly bounced back, perhaps attracting some dip-buying.
Canadian economic data is thin on the ground today, potentially leaving CAD exposed to oil price dynamics and USD movement.
Data releases
16:00 GBP Inflation Rate (Sep)
04:40 EUR ECB President Lagarde Speech