Australian dollar (AUD) rebounds from weak PMIs
The Australian dollar (AUD) initially weakened yesterday after Australia’s preliminary PMIs for September reported a sharp slowdown in private sector activity.
However, the ‘Aussie’ bounced back during the European trading hours as an upbeat market mood boosted the risk-sensitive currency.
Turning to today, Australia’s latest monthly inflation indicator could give AUD a lift if it shows that inflation accelerated last month, as expected.
New Zealand dollar (NZD) recovers as mood improves
The New Zealand dollar (NZD) also started yesterday’s session on the back foot before recouping losses in the evening, thanks to an increased appetite for risk.
With New Zealand economic data thin on the ground today, NZD could take its cues from the global market mood once again.
Pound (GBP) wobbles amid disappointing PMIs
The pound (GBP) wavered yesterday, with Sterling taking a hit after the UK’s latest services PMI showed an unexpectedly sharp slowdown in activity this month.
The increasingly risk-sensitive UK currency then managed to rebound against its safer rivals amid a cheery market mood, although it lost ground against riskier peers.
UK data releases are in short supply today, potentially leaving the pound to trade without a clear direction. Any domestic news, such as speculation around the upcoming budget, could stoke movement.
Euro (EUR) undermined by Russia worries
The euro (EUR) slipped yesterday amid growing geopolitical tensions, after drones near Oslo and Copenhagen airports grounded flights, leading some to speculate about Russian involvement.
The single currency drew little support from its preliminary PMIs, which surprised markets by showing a decline in manufacturing and an acceleration in service sector activity.
Today, EUR investors will be looking to Germany’s latest business climate indicator for fresh impetus. The index is expected to edge up to hit its highest level since May 2023, which could provide the euro with support.
US dollar (USD) subdued amid mixed Fed remarks
The US dollar (USD) was muted yesterday, with the safe-haven ‘greenback’ wavering as the market mood shifted from risk-off to risk-on.
Mixed comments from Federal Reserve officials also kept USD confined to a relatively narrow range, while the latest US PMIs from S&P Global failed to prompt much movement.
The ‘greenback’ could trade on market risk dynamics today amid a lack of US data. Could a souring mood drive the US dollar higher?
Canadian dollar (CAD) supported by rising crude prices
The crude-linked Canadian dollar (CAD) firmed against some weaker peers yesterday thanks to an uptick in oil prices, although the currency struggled elsewhere.
Canadian data is absent from today’s calendar. As a result, the ‘loonie’ is likely to trade on USD movement and oil price dynamics. Could another rise in crude buoy CAD exchange rates?
Data releases
11:30 AUD Monthly CPI Indicator (Aug)
18:00 EUR DE Ifo Business Climate (Sep)