Australian dollar (AUD) dented by slowing wage growth
The Australian dollar (AUD) came under pressure on Wednesday with the release of Australia’s latest wage price index.
The cooling of wage growth underlined how price pressures across Australia continue to ease and stoked expectations the Reserve Bank of Australia’s (RBA) next move will be an interest rate cut.
Australia’s jobs report may exert additional pressure on the ‘Aussie’ this morning as an expected slowing of employment growth is likely to reinforce RBA rate cut bets.
New Zealand dollar (NZD) subdued in cautious trade
The New Zealand dollar (NZD) stumbled yesterday as a cautious market mood limited market risk appetite.
With domestic data in short supply, the ‘kiwi’ is likely to remain sensitive to risk sentiment today. Will additional risk-off flows leave NZD on the back foot?
Pound (GBP) steady as BoE’s Mann warns of high inflation
Trade in the pound (GBP) was mostly positive on Wednesday, as it drew support from comments by Bank of England (BoE) policymaker Catherine Mann.
Mann warned of upward risks to UK inflation and suggested it’s ‘important to hold (interest rates) for longer’.
Looking ahead, the pound may struggle to find direction today as UK data is thin on the ground.
Euro (EUR) pressured by concerns over US trade policy
The euro (EUR) struggled to find momentum yesterday amid ongoing concerns over future US trade policy under Donald Trump.
EUR investors fear that a trade confrontation between the US and EU will severely impact the Eurozone economy and force the European Central Bank (ECB) to continue cutting interest rates.
Today’s session will see the publication of the minutes from the ECB’s latest policy meeting. If these signal that policymakers are contemplating another rate cut in December, the euro may slide.
US dollar (USD) buoyed by hawkish Fed remarks
The US dollar (USD) firmed during yesterday’s session in response to hawkish remarks by Federal Reserve policymaker Lorie Logan
Speaking in the wake of data showing that US inflation accelerated from 2.4% to a three-month high of 2.6% in October, Logan suggested markets may be a little too confident in a December rate cut.
The latest US producer price index may help the US dollar extend these gains later this evening if they report that producer inflation outpaced expectations last month.
Canadian dollar (CAD) muted as oil prices slide
The Canadian dollar (CAD) was placed on the defensive on Wednesday as a softening of oil prices limited the appeal of the commodity-linked currency.
Oil price dynamics may continue to drive the ‘loonie’ today, in the absence of any notable Canadian economic data.
Data Releases
10:30 AUD Unemployment Rate (Oct)
22:30 EUR ECB Minutes
23:30 USD PPI (Oct)