Australian dollar (AUD) underpinned by RBA Hunter remarks
The Australian dollar (AUD) was able to consolidate its recent gains against most of its peers on Monday, despite a broadly risk-averse market mood.
This resilience was linked to remarks from Reserve Bank of Australia (RBA) Assistant Governor Sarah Hunter, who suggested more needed to be done to bring down inflation.
Looking ahead, the absence of any notable domestic data could leave the ‘Aussie’ more susceptible to market risk dynamics today, potentially leading to some weakness if sentiment remains downbeat.
New Zealand dollar (NZD) pressured by risk-off flows
The New Zealand dollar (NZD) got off to a soft start this week amid the deterioration in investor risk appetite.
Barring a major slump in investor sentiment, movement in the ‘kiwi’ may be limited today, amid some apprehension ahead of the Reserve Bank of New Zealand’s (RBNZ) interest rate decision on Wednesday.
Pound (GBP) dented by pre-budget jitters
The pound (GBP) ticked lower against the majority of its peers yesterday amid fresh caution ahead of Chancellor John Healey’s inaugural Autumn Budget.
While recent comments from Healey have emphasised his business-friendly approach to the budget, questions remain about what taxes the Chancellor may need to implement to balance the books on Wednesday.
Expect this uncertainty to continue to limit Sterling demand through today’s session.
Euro (EUR) steady as German business sentiment improves
The euro (EUR) held its ground on Monday, as Germany’s latest IFO business climate index surprised to the upside in October, rising to its best levels since May 2023.
This helped to counter ongoing concerns about France’s debt burden and the continued civil unrest in the Eurozone’s second-largest economy.
Turning to today’s session, the euro may struggle for direction amid a lull in data and a sense of caution ahead of the European Central Bank’s (ECB) interest rate decision later in the week.
US dollar (USD) bolstered by risk-off flows
The US dollar (USD) accelerated at the start of this week as a cautious market mood saw more investors favour the safe-haven currency.
However, USD gains remained contained by an ongoing AI selloff, with a fresh fall in tech stocks linked to remarks from Elon Musk regarding data centre funding.
Coming up, an expected rebound in US durable goods orders may help to underpin USD demand when September’s figures are published later today.
Canadian dollar (CAD) softens as oil price dip
The Canadian dollar (CAD) faced selling pressure on Monday as Brent oil prices pulled back from the multi-month highs struck at the end of last week.
While a further correction in oil prices may continue to drag on the ‘loonie’ today, any losses may be tempered as markets await an expected interest rate hike from the Bank of Canada (BoC) on Wednesday.
Data releases
22:30 USD Durable Goods Orders (Sep)