Australian dollar (AUD) flat as AUD investors eye RBA decision
The Australian dollar (AUD) traded sideways on Monday as AUD investors braced for the Reserve Bank of Australia’s (RBA) latest interest rate decision later today.
The RBA is widely expected to deliver another 25-basis-point hike following the conclusion of its latest meeting.
As the hike is already priced in, any subsequent AUD movement will be driven by the bank’s guidance, with the ‘Aussie’ likely to rally if RBA Governor Michele Bullock leaves the door open to further hikes.
New Zealand dollar (NZD) wobbles amid fluctuating mood
The New Zealand dollar (NZD) was also subdued at the start of this week amid an uneven market mood.
Expect movement in NZD to remain tied to market risk dynamics today, with the ‘kiwi’ likely to weaken if a risk-averse mood prevails.
Pound (GBP) buoyed by hawkish BoE bets
The pound (GBP) enjoyed broad support at the start of this week amid growing confidence that the Bank of England (BoE) will deliver an interest rate hike in November.
Speaking on Monday, BoE Deputy Governor Dave Ramsden suggested he would support tightening policy if upside pressures on inflation persist.
Turning to today’s session, in the absence of any notable UK economic releases, the pound may find itself at the mercy of wider market movements.
Euro (EUR) undermined by soaring gas prices
The euro (EUR) ticked lower against the majority of its peers on Monday as EUR investors expressed alarm about the latest jump in European gas prices.
Further limiting demand for the single currency was its inverse trade relationship with the US dollar (USD).
The release of the Eurozone’s latest economic sentiment index may offer some relief to the euro today, if morale continued to improve through September.
US dollar (USD) bolstered by energy price jitters
The US dollar maintained its bullish trajectory yesterday, as a fresh surge in global oil prices stoked safe-haven demand.
Brent crude jumped over $108 per barrel on Monday after US President Donald Trump rejected a proposal from Iran to reopen the Strait of Hormuz.
The spotlight for USD investors today will be on the latest US JOLTS job openings survey, with a forecast decline in new openings potentially applying some pressure to USD.
Canadian dollar (CAD) dented by trade war jitters
The Canadian dollar (CAD) edged lower on Monday as concerns about the ongoing US-Canada trade war offset any potential gains for the commodity-linked currency stemming from the latest surge in global oil prices.
Coming up, Canada’s latest GDP figures could provide support to the ‘loonie’ later today, if month-on-month growth rebounded in August.
Data releases
14:30 AUD RBA Interest Rate Decision
19:00 EUR Economic Sentiment (Sep)
22:30 CAD GDP (Aug)
00:00 USD JOLTs Job Openings (Aug)