Australian Dollar (AUD) Firms as Situation in China Improves
The Australian Dollar (AUD) rose up against the majority of its peers yesterday, despite a lack of AU data.
The ‘Aussie’ seemed to benefit from indications that the Evergrande crisis was under control: China’s second-largest property developer is now under close government scrutiny as Beijing has made project completion a top priority.
Today’s retail sales are likely to drive further movement in the Australian Dollar. Sales are predicted to fall by less than last month, potentially supporting AUD.
Pound (GBP) Firms on BoE Tailwinds
The Pound (GBP) strengthened on Monday despite UK fuel concerns and ongoing supply chain issues, thanks to tailwinds from last week’s Bank of England (BoE) rate decision.
Following Thursday’s interest rate decision, GBP investors have begun to price in an early rate hike from the BoE, with analysts predicting it could take place as early as February.
Looking ahead, the absence of any notable GBP data releases could see UK headlines regarding the petrol crisis more directly influence Sterling sentiment.
Euro (EUR) Slides in Wake of German Election
The Euro (EUR) fell against the majority of its peers yesterday afternoon as investors adopted a bearish stance in the wake of Olaf Scholz’s victory at the polls.
Scholz won the election by a narrow margin against the centre-right Christian Democratic Union (CDU) party: the most likely outcome for government is now a coalition between Scholz’s Social Democratic Party (SPD), the Greens and the Free Democratic Party (FDP).
Looking ahead, a speech by European Central Bank (ECB) President Christine Lagarde may provide fresh impetus for EUR investors today.
US Dollar (USD) Trades Mixed on Risk-On Mood, Positive Data
The US Dollar traded in a mixed range against its peers yesterday, weakening through much of the session as a bullish market mood sapped safe-haven demand.
However, these losses were limited by the publication of the latest US durable goods orders release, after order growth printed much stronger than expected.
Coming up today, the spotlight will be on Federal Reserve Chair Jerome Powell testimony before Congress, in which he is likely to be grilled on the bank’s stance on monetary policy.
Canadian Dollar (CAD) Gains on Rising Oil Prices
The Canadian Dollar (CAD) trended broadly higher on Monday, supported by a strong uptick in oil prices, with Brent crude climbing to a near-three-year high.
New Zealand Dollar (NZD) Muted in spite of Positive Mood
The New Zealand Dollar (NZD) struggled to capitalise on the upbeat market mood yesterday, with the currency left mostly rangebound against most of its peers.
Data Releases
Sep 28th11:30 AUD Retail Sales Prelim (Aug) -2%
Sep 28th22:00 EUR ECB Lagarde Speech N/A
Sep 29th 00:00 USD Fed Chair Powell Testimony N/A