Australian Dollar (AUD) Climbs on Upbeat Chinese Sales, Industrial Production
The Australian Dollar (AUD) rose against the majority of its peers on Monday as Chinese retail sales and industrial production exceeded expectations. As a proxy for the Chinese economy, AUD benefits from positive Chinese data.
A risk-on mood also acted as a tailwind for AUD exchange rates, as real estate company Evergrande avoided defaulting and Brexit talks resumed.
Looking ahead, minutes from the Reserve Bank of Australia (RBA)’s latest policy meeting may influence ‘Aussie’ trading, alongside a speech from Governor Philip Lowe.
Pound (GBP) Subdued by French Migrant Threat
The Pound’ (GBP) upside potential was capped yesterday, as French officials threatened to send foreign migrants to the UK in response to a recent Brexit dispute.
Priti Patel met French politician Gérald Darmanin in Paris after record numbers of migrants crossed the channel last week.
A speech by Jonathan Haskel also limited the appeal of the Pound, as the Bank of England (BoE) policymaker remarked that uncertainty over Britain’s exit from the European Union held back business investment in the UK.
UK employment data today is likely to influence GBP exchange rates today. Will a drop in domestic unemployment bolster Sterling?
Euro (EUR) Tumbles on Dovish Lagarde Speech
The Euro (EUR) faced pressure on Monday as dovish comments from European Central Bank (ECB) President Christine Lagarde weighed upon trading sentiment.
Lagarde said that monetary policy tightening would ‘do more harm than good’ at the present moment and that conditions for a rate hike are unlikely to be met in 2022.
Eurozone employment data and GDP will be the main catalyst for movement today, with US Dollar dynamics also potentially impacting EUR trade.
US Dollar (USD) Drops despite Strong Manufacturing Data
The US Dollar was subdued yesterday in spite of upbeat data from the New York Empire State manufacturing index. New orders and shipments posted substantial increases, as employment grew at its fastest pace on record.
A risk-on mood and additional strong data from China drew support away from the safe-haven currency, alongside falling US Treasury bond yields.
Looking ahead, upcoming US retail sales could help to bolster the US Dollar if sales growth continues to accelerate as forecast.
Canadian Dollar (CAD) Trades Mixed on WTI Losses
The Canadian Dollar (CAD) fell against several peers on Monday as crude oil depreciated. CAD investors fear increased oil supplies via the US Strategic Petroleum Reserves (SPR).
Comments from the Bank of Canada (BoC)’s Tiff Macklem capped losses however, as he suggested economic slack in the Canadian economy is closer to being absorbed, therefore quantitative easing can be withdrawn.
New Zealand Dollar (NZD) Firms on Risk Sentiment
The New Zealand Dollar (NZD) gained yesterday on risk-on tailwinds and positive Chinese data. Strength in the Australian Dollar also supported the ‘Kiwi’.
Data Releases
Nov 16th 10:30 AUD RBA Meeting Minutes N/A
Nov 16th 12:30 AUD RBA Gov Lowe Speech N/A
Nov 16th 17:00 GBP Unemployment Rate (Sep) 4.4%
Nov 16th 17:00 GBP Wage Growth (Sep) 5.6%
Nov 16th 20:00 EUR Eurozone Employment Change Prelim (Q3) 0.8%
Nov 16th 20:00 EUR Eurozone GDP 2nd estimate (Q3) 2.2%
Nov 16th 23:30 USD Retail Sales (Oct) 1.1%
Nov 17th 00:15 USD Industrial Production (Oct) 0.7%
Nov 17th 02:10 EUR ECB President Lagarde Speech N/A
Nov 17th 03:00 CAD BoC Schembri Speech N/A
Nov 17th 03:00 USD Fed Bostic Speech N/A
Nov 17th 05:55 USD Fed Harker Speech N/A
Nov 17th 06:30 USD Fed Daly Speech N/A