Australian dollar (AUD) flat following RBA Bullock comments
The Australian dollar (AUD) traded sideways against the majority of its peers on Monday, in response to remarks by Reserve Bank of Australia (RBA) Governor Michele Bullock.
Speaking in Parliament, Bullock reiterated that the bank is ready to respond to any deterioration in economic conditions.
Turning to today’s session, the release of Australia’s latest PMIs could sink the ‘Aussie’ as they are forecast to report private sector growth all but flatlined in September.
New Zealand dollar (NZD) rangebound in mixed trade
The New Zealand dollar (NZD) was also trapped in a narrow range at the start of this week amid an uneven market mood.
NZD data is in short supply today, likely leaving movement in the ‘kiwi’ to remain tied to market risk dynamics.
Pound (GBP) firms as Gatwick plan to ‘kickstart growth’
Easing UK fiscal concerns opened a path for the pound (GBP) to firm yesterday, recovering a small portion of the losses suffered at the end of last week.
Chancellor Rachel Reeves underpinned this more sanguine outlook for the UK economy as she declared to be delivering the government’s promise to ‘kickstart the economy’, after approving plans for a second runway at Gatwick.
The UK’s own PMIs will be in focus for GBP investors today. If service sector growth is shown to have moderated this month, it could exert some pressure on Sterling.
Euro (EUR) underpinned by improving consumer morale
The euro (EUR) appreciated on Monday, its gains being supported by the Eurozone’s latest consumer confidence figures.
September’s index rose from -15.5 to -14.9, beating forecasts but remaining well below its historical average.
Today also sees the release of the Eurozone’s preliminary PMIs for September. Could a modest acceleration in private sector activity provide some lift for the euro?
US dollar (USD) weakens as Fed speeches in focus
The US dollar (USD) got off to a slow start this week, ahead of several speeches by Federal Reserve policymakers.
USD investors were particularly focused on the first public comments by new Trump appointee Stephen Miran, as he was the lone dissenter calling for a steeper 50bps interest rate cut last week.
A speech by Jerome Powell will be closely watched by USD investors in overnight trade as they look for insight into the Fed Chair’s outlook on monetary policy.
Canadian dollar (CAD) slides on PPI miss
The Canadian dollar (CAD) retreated on Monday as a shock slide in producer prices last month stoked bets for another interest rate cut from the Bank of Canada (BoC).
In the absence of any notable Canadian data, it’s likely the ‘loonie’ will take its cues from oil market developments today. If oil prices continue to soften, CAD exchange rates may weaken.
Data releases
09:00 AUD Composite PMI (Sep)
18:00 EUR Composite PMI (Sep)
18:30 GBP Composite PMI (Sep)
02:35 USD Fed Powell Speech