Australian Dollar (AUD) Fluctuates amidst Border Reopening Optimism
The Australian Dollar (AUD) traded in a mixed range yesterday as markets welcomed news that Australia would be reopening its borders to vaccinated students and business visa holders.
However, gains related to the reopening were offset by a prevailing risk-off mood, which limited the appeal of the risk-sensitive currency.
Into today, Australian construction data is looking to report a decline in the third quarter, potentially weighing upon AUD.
Pound (GBP) Tumbles as PMI Data Fails to Support
Pound (GBP) losses were initially capped on Tuesday as the UK’s manufacturing and services PMIs exceeded expectations.
However, Sterling eventually succumbed to pressure stemming from waning expectations that the Bank of England (BoE) will high interest rates next month.
Industrial trends orders may help to lift the Pound against its peers today, as economists predict order growth will have accelerated this month.
Euro (EUR) Finds Support on Joint PMI Release
The Euro (EUR) was buoyed yesterday by upbeat PMI data from both Germany and the Eurozone.
The single currency shrugged off coronavirus concerns as output growth accelerated in Germany and the bloc overall. Manufacturing activity remained subdued on supply chain disruptions and inflation, but the PMIs exceeded expectations regardless.
Germany’s Ifo business climate will likely be the main catalyst for Euro movement today, if morale weakens as expected, EUR may face headwinds.
US Dollar (USD) Firms as Investors Predict an Imminent Rate Hike
The US Dollar (USD) stood tall near a 16-month peak on Tuesday, well supported by the prospect of early policy tightening by the Federal Reserve.
Market bets were reinforced following Jerome Powell’s reappointment to the post of Fed Chairman on Monday. This, along with elevated US bond yields and renewed Covid concerns, underpinned the safe-haven ‘Greenback’.
A clutch of US data tomorrow will likely drive movement in USD exchange rates. The second GDP estimate forecasts a smaller expansion than last month; reduced jobless claims may lend upside.
Canadian Dollar (CAD) Trades Mixed on Choppy Oil Prices
Despite an official announcement from the White House pledging to release crude oil reserves, the Canadian Dollar (CAD) managed to hold steady yesterday, as WTI prices increased slightly.
While officials in India announced that they would also release 5m barrels, with China and Japan also prepared to contribute, it seems that markets had already priced in such measures.
New Zealand Dollar (NZD) Slides Overall as Retail Sales Disappoint
The New Zealand Dollar (NZD) sustained losses on Tuesday as retail sales in New Zealand fell by 8.1% on a quarterly basis. A volatile risk sentiment also weighed upon the currency, alongside an unstable AUD.
The Reserve Bank of New Zealand (RBNZ) will deliver its latest interest rate decision tomorrow economists predict a rise to 0.75%. If expectations are correct, the ‘Kiwi’ will likely enjoy tailwinds.
Data Releases
Nov 24th 10:30 AUD Construction Work Done (Q3) -3.1%
Nov 24th 11:00 NZD RBNZ Interest Rate Decision 0.75%
Nov 24th 19:00 EUR German Ifo Business Climate (Nov) 96.6
Nov 24th 21:00 GBP CBI Industrial Trends Orders (Nov) 13
Nov 24th 23:30 USD Durable Goods Orders (Oct) 0.2%
Nov 24th 23:30 USD GDP Growth Rate 2nd Est (Q3) 2.2%
Nov 24th 23:30 USD Initial Jobless Claims (20/Nov) 260K
Nov 25th 01:00 USD Michigan Consumer Sentiment Final (Nov) 66.9
Nov 25th 07:45 NZD Balance of Trade (Oct) N$-2148M