Australian dollar (AUD) climbs following RBA’s hawkish hold
The Australian dollar (AUD) leapt yesterday following the Reserve Bank of Australia’s (RBA) interest rate decision.
The bank held rates steady, as expected, while RBA Governor Michele Bullock said that rate hikes remain on the table, seemingly unperturbed by last week’s disappointing GDP figures.
Turning to today, Australian economic data is absent from the calendar. Therefore, market risk dynamics might drive most movement in the ‘Aussie’.
New Zealand dollar (NZD) buoyed by strong ‘Aussie’
The New Zealand dollar (NZD) rose in tandem with the ‘Aussie’ yesterday, as NZD enjoyed its positive correlation with AUD.
With New Zealand data absent from today’s economic calendar, the ‘kiwi’ could trade on market risk appetite.
Pound (GBP) slips amid mixed BoE commentary
The pound (GBP) fell yesterday, as mixed comments from Bank of England (BoE) policymakers failed to support Sterling.
Testifying before the Treasury committee, four officials from the BoE offered widely different opinions on the upside and downside risks to UK inflation.
British data remains in short supply today, potentially leaving the pound without a clear trajectory.
Euro (EUR) pressured by geopolitical concerns
The euro (EUR) struggled to attract support yesterday as growing tensions between the US and the EU, as well as worries about the Russia-Ukraine war, dampened demand for the single currency.
In an interview with Politico, US President Donald Trump criticised the EU and European leaders, while also saying that Russia was in a stronger position than Ukraine in peace negotiations.
European Central Bank (ECB) President Christine Lagarde is due to speak this evening. Any comments on monetary policy or the Eurozone’s growth outlook could impact EUR.
US dollar (USD) wavers as markets digest jobs data
The US dollar (USD) was choppy yesterday, with the currency softening against stronger peers but gaining ground against weaker rivals in the evening.
USD drew some support from steady jobs data, with new releases showing signs of resilience in the American labour market.
The Federal Reserve will announce its latest interest rate decision in the early hours of tomorrow morning, meaning USD may remains subdued today as investors avoid placing any aggressive bets.
Canadian dollar (CAD) firms despite wavering oil prices
The crude-linked Canadian dollar (CAD) shrugged off uncertain movement in the oil market yesterday to rise against weaker peers as investors reassessed the Bank of Canada’s (BoC) path for interest rates ahead of tonight’s decision.
If the BoC strikes a slightly more hawkish tone tonight following last week’s strong jobs data, CAD could strengthen further.
Data releases
20:55 EUR ECB President Lagarde Speech
00:45 CAD BoC Interest Rate Decision