Australian Dollar (AUD) Stumbles as Victoria Covid Cases Reach All-Time High
The Australian Dollar (AUD) fell against its peers yesterday as cases of coronavirus in the state of Victoria reached an all-time high. A total of 1,763 cases were recorded yesterday, exceeding the previous high of 1,488 on Saturday.
A relatively risk-off mood also drew investors away from riskier currencies such as AUD. Risk aversion was exacerbated by ongoing concern surrounding the Chinese economy, as a second construction company, Fantasia Holdings Group Co. missed a dollar bond payment.
Looking ahead, today’s Ai services group index for September may boost ‘Aussie’ sentiment, if it exceeds last month’s figure, as expected.
Pound (GBP) Rises as UK PMI Data Surpasses Estimates
The Pound (GBP) trended higher yesterday, bolstered by a higher-than-expected services PMI release. The Markit/CIPS final figure printed at 55.4 as opposed to the 54.6 expected, climbing marginally on last month’s figure.
Gains were capped, however, as supply chain constraints and staff shortages limited new order growth.
Today’s UK construction PMI may dent GBP sentiment somewhat, if the release prints lower than last month, as expected.
Euro (EUR) Sinks as German and Eurozone Data Disappoints
The Euro (EUR) sustained losses through yesterday’s session, as PMI data from Germany and the Eurozone printed lower than last month, despite exceeding forecasts.
Respective services PMIs showed a slowdown in service sector activity, as optimism waned. In the Eurozone, the rate of jobs growth slowed to a four-month low.
If today’s German factory orders reveal a decline as expected, the Euro may encounter headwinds, although retail sales across the Eurozone are predicted to improve upon last month.
US Dollar (USD) Strengthens, Faces Headwinds over Debt Ceiling
The US Dollar (USD) saw mixed movement yesterday but trended higher overall as a risk-off market mood supported the safe-haven currency.
Concerns over China’s economic situation worried investors, while international inflationary pressures exacerbated fears of financial instability.
Gains were limited, however, as President Biden warned that the US could default on its debt within two weeks if Republicans do not cooperate on raising or suspending the debt ceiling.
Looking ahead, US employment data this evening could boost the US Dollar if the number of workers hired exceeds last month’s figure. A speech from Atlanta’s Federal Reserve President, Raphael Bostic, my also influence trading.
Canadian Dollar (CAD) Firms as Oil Prices Continue to Climb
The Canadian Dollar (CAD) rose against its peers yesterday as prices of crude oil continued to climb. WTI prices are lingering around $77 per barrel, touching a seven-year high as demand for the black gold increases on rising gas costs.
New Zealand Dollar (NZD) Fluctuates as Interest Rate Decision Approaches
The New Zealand Dollar (NZD) traded in a mixed range yesterday ahead of the Reserve Bank of New Zealand (RBNZ)’s interest rate decision.
With the central bank widely expected to raise interest rates from 0.25% to 0.5%, the ‘Kiwi’ could make significant gains on hawkish RBNZ forward guidance.
Data Releases
Oct 6th 11:00 NZD RBNZ Interest Rate Decision 0.5%
Oct 6th 16:00 EUR German Factory Orders (Aug) -2.1%
Oct 6th 18:30 GBP Construction PMI (Sep) 54
Oct 6th 19:00 EUR Eurozone Retail Sales (Aug) 0.8%
Oct 6th 22:15 USD ADP Employment Change (Sep) 428K
Oct 6th 23:00 USD Fed Bostic Speech N/A