Australian dollar (AUD) wobbles amid energy price surge
The Australian dollar (AUD) initially plunged yesterday amid alarm after global oil prices shot as high as $107 a barrel.
The ‘Aussie’ then pared a good portion of these losses through the European trading session, as oil prices settled closer to $100.
Today sees the publication of Australia’s latest consumer and business confidence figures, with AUD likely to come under fresh pressure if morale shows signs of deterioration.
New Zealand dollar (NZD) rattled by shifting market sentiment
The New Zealand dollar (NZD) also fluctuated on Monday amid energy-price-induced volatility in currency markets.
NZD data remains in short supply, likely leaving the ‘kiwi’ sensitive to market risk dynamics today.
Pound (GBP) undermined by rising bond yields
The pound (GBP) trended broadly lower at the start of this week, as renewed UK inflation fears linked to the spike in energy prices triggered a sharp rise in government borrowing.
With the odds of a Bank of England (BoE) interest rate cut this year swiftly evaporating, two-year bond yields saw their largest jump since Liz Truss’s disastrous mini-budget in 2022.
In the absence of notable UK economic data, any movement in the pound today is likely to be driven by the government’s response to the energy price crisis and broader market trends.
Euro (EUR) slides amid German factory slowdown
The euro (EUR) retreated through Monday’s session after data from Germany reported a contraction in both factory orders and industrial production at the start of 2026.
The lacklustre data compounded losses linked to the jump in oil prices and fresh fears of an energy price crisis in Europe.
Coming up, the euro may remain on the defensive today, as Germany’s latest trade figures are expected to report that exports also declined in January.
US dollar (USD) supported amid energy price fears
The US dollar (USD) got off to a bullish start this week, with investors flocking to the safe-haven currency amid a surge in global energy prices that rattled markets.
While oil prices retreated a little amid reported G7 discussions on releasing oil reserves, America’s relative energy independence, coupled with broader geopolitical uncertainty, allowed the ‘greenback’ to sustain most of its gains through Monday’s session.
Looking ahead, the US dollar is likely to continue catching bids through today’s session, as the situation in the Middle East no doubt continues to dominate headlines.
Canadian dollar (CAD) bolstered by soaring oil prices
The Canadian dollar (CAD) enjoyed a strong start to this week’s session as the surge in oil prices reflected positively on the commodity-linked currency.
Expect the ‘loonie’ to remain well supported through today’s session as oil prices likely remain elevated.
Data releases
09:30 AUD Consumer Confidence (Mar)
10:30 AUD Business Confidence (Feb)
17:00 EUR German Balance of Trade (Jan)