Australian dollar (AUD) drops as commodity prices fall
The Australian dollar (AUD) fell to multi-week lows yesterday as sliding commodity prices pulled the resource-linked ‘Aussie’ lower.
An improving market mood in the evening failed to lift AUD, although it may have put a floor under the currency.
Turning to today, Australian data remains in short supply. Therefore, the ‘Aussie’ dollar could once again trade on commodity prices and market risk dynamics.
New Zealand dollar (NZD) briefly touches fresh multi-month lows
Likewise, the New Zealand dollar (NZD) was hurt by the downbeat trade in commodities markets yesterday.
While the ‘kiwi’ initially fared worse than the ‘Aussie’, with NZD striking multi-month lows against some peers, it recouped these losses amid the improving mood in the evening.
Risk sentiment and commodity prices may once again drive NZD movement today. Could an improving mood lend the New Zealand dollar some much-needed support?
Pound (GBP) underpinned by budget hopes
The pound (GBP) rose against its weaker rivals yesterday as GBP investors were cautiously optimistic ahead of the upcoming Autumn Budget.
The Labour government has been trying hard to present its forthcoming fiscal plans as a way to ‘rebuild Britain’ and boost growth, despite warning of ‘painful’ tax rises.
Sterling could once again trade with muted gains today if investors remain hopeful ahead of the budget. However, movement may be limited.
Euro (EUR) buoyed by USD weakness
The euro (EUR) enjoyed some support yesterday thanks to the single currency’s strong inverse correlation with a falling US dollar (USD).
However, an upbeat market mood and hesitancy ahead of some high-impact Eurozone data later in the week kept a lid on the safer euro.
This evening, Germany’s latest consumer confidence report is due out. If morale in the Eurozone’s largest economy remains low heading into November, EUR could stumble.
US dollar (USD) softens amid improving mood
After a positive start to the session, the US dollar then began to fall in the afternoon as an improving mood sapped demand for the safe-haven ‘greenback’.
USD investors also seemed reluctant to bet heavily on the currency ahead of some very high-impact US releases later in the week.
Risk sentiment could continue to determine USD’s direction today, although movement may remain limited ahead of the important data due in the latter part of this week’s session.
Canadian dollar (CAD) declines amid weaker oil prices
The Canadian dollar (CAD) trended lower yesterday as a slump in oil prices dented the crude-linked currency.
Looking ahead to tonight, Bank of Canada (BoC) Governor Tiff Macklem is due to deliver a speech. Could downbeat comments about the Canadian economy drag on the ‘loonie’?
Data releases
17:00 EUR German GfK Consumer Confidence (Nov)
21:30 CAD BoC Macklem Speech