Australian dollar (AUD) spikes on China stimulus optimism
The Australian dollar (AUD) initially firmed this week, bolstered by the stimulus measures unveiled by the Chinese government in its 2025 annual policy statement.
The ‘Aussie’ then pulled a 180 overnight as a deterioration in market sentiment dragged on the currency.
Reserve Bank of Australia (RBA) Assistant Governor Brad Jones will speak later today. Will a hawkish outlook on policy help to revive AUD demand?
New Zealand dollar (NZD) fluctuates in mixed trade
The New Zealand dollar (NZD) traded in a wide range on Monday as the risk-sensitive currency tracked the fluctuations in market risk appetite.
NZD data remains thin on the ground today, potentially leading to more volatility in the ‘kiwi’ as it continues to be driven by market sentiment.
Pound (GBP) trades sideways in quiet trade
The pound (GBP) was listless through yesterday’s session in the absence of any notable UK economic data.
This left GBP investors to wrestle with mixed data published at the end of last week, which continued to paint an uncertain outlook for the UK economy.
Bank of England (BoE) Chief Economist Huw Pill will deliver a speech later today. If he maintains a hawkish outlook and continues to urge caution on further interest rate cuts, Sterling may strengthen.
Euro (EUR) briefly jumps on German election result
The euro (EUR) got off to a solid start on Monday, with the currency buoyed by the result of Germany’s federal election, amid hopes a more stable ‘grand coalition’ will help revive the fortunes of the Eurozone’s largest economy.
However, the single currency struggled to sustain these gains throughout the session, particularly in the wake of weaker-than-expected German business confidence.
Coming up, European Central Bank (ECB) policymaker Isabel Schnabel is scheduled to speak later today. As one of the more hawkish voices within the bank, her remarks may prove supportive of the euro.
US dollar (USD) muted in risk-positive trade
The US dollar (USD) got off to soft start this week as a risk-positive mood initially limited safe-haven demand.
However, the downside in the ‘greenback’ bounced back later in the session as fresh geopolitical uncertainty soured sentiment.
USD investors will look to speeches by several Federal Reserve policymakers for fresh impetus on Tuesday. A hawkish consensus may trigger a rebound in USD exchange rates.
Canadian dollar (CAD) flat as oil prices stall
The Canadian dollar (CAD) traded in a narrow range on Monday as a stalling of oil prices offered limited trading impetus for the commodity-linked currency.
CAD data remains in short supply today, which is likely to leave movement in the ‘loonie’ tied to oil price dynamics.
Data releases
12:45 AUD RBA Jones Speech
19:20 USD Fed Logan Speech
23:00 EUR ECB Schnabel Speech
00:00 GBP BoE Pill Speech
02:45 USD Fed Barr Speech