Australian dollar (AUD) extends bullish run on RBA speculation
The Australian dollar (AUD) maintained a positive trajectory yesterday, with the currency largely able to shake off the headwinds that faced many of the other major currencies.
The ‘Aussie’ continued to outperform its other risk-sensitive peers amid increasingly hawkish Reserve Bank of Australia (RBA) policy speculation.
Turning to today’s session, Australia’s latest consumer and business confidence indexes could drag on the ‘Aussie’ if they report morale has begun to deteriorate again.
New Zealand dollar (NZD) softens in cautious trade
The New Zealand dollar (NZD) faced modest selling pressure on Monday as prevailing caution limited demand for the currency.
In the absence of any domestic data of note, expect the ‘kiwi’ to remain highly sensitive to market risk dynamics through today’s session.
Pound (GBP) steady following Chancellor’s growth speech
The pound (GBP) was stable at the start of this week after John Healey delivered his first major speech as UK Chancellor.
Healey struck an optimistic tone as he outlined the government’s plans to boost growth, but also refused to rule out the need for more tax hikes in his upcoming budget.
With UK economic data in short supply, Sterling may be left at the mercy of wider market trends today.
Euro (EUR) muted as German industrial production contracts
The euro (EUR) struggled to attract support on Monday, following the release of Germany’s latest industrial production figures.
July’s data reported a shock slump in factory output, which was enough to offset upwardly revised Eurozone GDP figures.
Coming up, the euro may struggle today if Germany’s latest trade figures show that export growth stalled through July.
US dollar (USD) stalls amid thin trading conditions
The US dollar (USD) traded without strong directional bias at the start of this week amid thin trading conditions in the US currency.
US markets were closed for the extended Labor Day weekend on Monday, limiting liquidity in the ‘greenback’.
Turning to today’s session, the US dollar is likely to catch bids if ongoing geopolitical uncertainty boosts safe-haven demand.
Canadian dollar (CAD) firms as oil prices rise
The commodity-linked Canadian dollar (CAD) trended broadly higher on Monday, as global oil prices pushed back above $97 per barrel.
Expect the ‘loonie’ to maintain a positive trajectory today if crude prices continue to push higher.
Data releases
10:30 AUD Consumer Confidence (Sep)
11:30 AUD Business Confidence (Aug)
16:00 EUR German Balance of Trade (Jul)