Australian dollar (AUD) wobbles in mixed trade
The Australian dollar (AUD) wavered on Monday amid a mixed market mood and regional concerns.
While broad risk sentiment was underpinned by optimism surrounding a potential Ukraine peace deal, rising regional tensions between China and Japan kept AUD demand in check.
In the absence of any notable domestic data, movement in the ‘Aussie’ may remain at the mercy of market sentiment today.
New Zealand dollar (NZD) rangebound ahead of RBNZ rate decision
The New Zealand dollar (NZD) was flat at the start of this week, with NZD investors reluctant to alter their positions in the currency ahead of the Reserve Bank of New Zealand’s (RBNZ) upcoming interest rate decision.
Continued caution could leave the ‘kiwi’ trapped within a narrow range today.
Pound (GBP) undermined by pre-budget jitters
The pound (GBP) was subdued yesterday as pre-budget nerves left GBP investors wary of the currency.
These jitters were underpinned by remarks from former Bank of England (BoE) Chief Economist Andy Haldane, who suggested that the uncertainty posed by the budget is ‘the single biggest reason why growth has flatlined’ in the second half of 2025.
The Confederation of British Industry’s (CBI) latest distributive trades index may provide a small distraction from the budget today, with another decline in UK retail sales volumes potentially exerting more pressure on Sterling.
Euro (EUR) buoyed by Ukraine peace hopes
The euro (EUR) ticked higher on Monday, supported by fresh hopes of a breakthrough in the Ukraine-Russia peace process.
This allowed the single currency to largely shrug off this month’s surprise deterioration in German business sentiment.
Looking ahead, confirmation that Germany’s economy stalled in the third quarter after contracting in Q2 could act as a headwind for the euro today.
US dollar (USD) pressured by renewed Fed rate bets
The US dollar (USD) stumbled at the start of this week amid a dovish repricing of Federal Reserve interest rate expectations that catapulted the odds of a December cut to 75%.
Adding to the pressure on the ‘greenback’ was the optimism surrounding a potential Ukraine-Russia peace deal.
Coming up, the latest US retail sales figures may further soften USD demand if they show a slowdown in sales growth in September.
Canadian dollar (CAD) subdued amid soft oil prices
The commodity-linked Canadian dollar (CAD) edged lower on Monday, pressured by a further softening of oil prices amid hopes of an end to the war in Ukraine.
Assuming oil prices remain in decline, the ‘loonie’ may remain on the back foot through today’s session.
Data releases
17:00 EUR German GDP (Q3)
21:00 GBP CBI Distributive Trades (Nov)
23:30 USD Retail Sales (Sep)