Australian dollar (AUD) finds fleeting gains on RBA bets
The Australian dollar (AUD) firmed through yesterday’s Asian trading session amid hawkish Reserve Bank of Australia (RBA) interest rate expectations.
However, these gains faded during European trading hours as a souring market mood weakened the appeal of the risk-sensitive ‘Aussie’.
Coming up, Australia’s latest consumer confidence figures may underpin AUD exchange rates if this month’s index reports an improvement in morale.
New Zealand dollar (NZD) fluctuates amid shifting market mood
Trade in the New Zealand dollar (NZD) was uneven on Monday as the currency tracked the swings in market risk appetite.
NZD economic data remains in short supply today, leaving the ‘kiwi’ to be driven by market risk dynamics.
Pound (GBP) slips as UK bond yields rise
The pound (GBP) was subdued at the start of the week amid a fresh uptick in UK bond yields, due to apparent contagion risks from the other side of the channel.
GBP investors were also wary of making any aggressive bets ahead of a speech by Bank of England (BoE) Governor Andrew Bailey, scheduled for after European markets closed.
Turning to today’s session, in the absence of any notable UK economic releases, the pound may struggle to find direction.
Euro (EUR) rocked by French political turmoil
The euro (EUR) was met with notable selling pressure on Monday, as the shock resignation of French Prime Minister Sébastien Lecornu plunged the Eurozone’s second-largest economy into another political crisis.
Lecornu’s resignation, only 28 days into the job, reignited fears that France’s deepening political divisions are making it impossible for the country to implement the much-needed fiscal reforms to tackle its ballooning debt.
In addition to French political uncertainty, the euro may also be influenced by Germany’s latest factory orders figures today. Will a rebound in order growth offer support to the single currency?
US dollar (USD) firms in cautious trade
The US dollar (USD) strengthened at the start of this week as geopolitical uncertainty bolstered demand for safe-haven assets.
However, the ongoing US government shutdown capped the US dollar’s upside potential as it became clear that little progress had been made to end the Congressional deadlock over the weekend.
Coming up, several Federal Reserve policymakers are scheduled to speak later today, but the focus is likely to be on Trump ally Stephen Miran. If he repeats his calls for the bank to deliver a series of aggressive cuts, the US dollar is likely to suffer.
Canadian dollar (CAD) buoyed by rising oil prices
The Canadian dollar (CAD) firmed on Monday, with the commodity-linked currency benefiting from an uptick in oil prices.
Looking ahead, the release of the latest Ivey PMI could provide support for the ‘loonie’ later today if it reports an improvement in business activity last month.
Data releases
10:30 AUD Consumer Confidence (Oct)
16:00 EUR German Factory Orders (Aug)
00:00 CAD Ivey PMI (Sep)
00:30 USD Fed Miran Speech