Australian Dollar (AUD) Slips as Chinese Property Sector Suffers
The Australian Dollar (AUD) suffered from a shift in risk appetite yesterday. A fall in China’s industrial profits also weighed on AUD, as well as further woes for Chinese property giant Evergrande.
Expectations of further interest rate hikes from the Reserve Bank of Australia (RBA) may have lent support to the ‘Aussie’, however.
The Aussie could face additional pressure today as Australia’s latest retail sales figures are expected to report a slowing of sales growth last month.
New Zealand Dollar (NZD) Underpinned by RBNZ Rate Hike Bets
The New Zealand Dollar (NZD) slipped against its peers on Tuesday amid a retreat in risk appetite. Hawkish comments from Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr limited major losses for the ‘Kiwi, however.
With no significant data today, NZD is likely to affected by any changes in risk appetite.
Pound (GBP) Drops as Government Faces Widespread Criticism over Tax Cut Plans
The Pound (GBP) fell on Tuesday amid continued concerns over the UK government’s economic policy. Businesses and economists called for the Chancellor Kwasi Kwarteng to reverse his plan for widespread tax cuts.
Losses for Sterling were limited by some hawkish comments from Bank of England (BoE) Chief Economist Huw Pill, however.
The UK’s long-term outlook and risk appetite are likely to drive movement in Sterling today.
Euro (EUR) Drops amid Damage to Nord Stream Pipeline
The Euro (EUR) struggled against many of its peers on Tuesday. Downbeat comments from European Central Bank (ECB) Vice President Luis de Guindos kept the single currency on the defensive.
Reports of damage to the Nord Stream pipeline may have also weighed on EUR yesterday.
A speech from ECB President Christine Lagarde could push the single currency lower today, if she follows de Guindos’ cautious stance.
US Dollar (USD) Supported by Hawkish Fed Signals
The US Dollar (USD) climbed over the course of yesterday. Signals that the Federal Reserve will continue with its path of aggressive interest rate hikes underpinned USD.
On the other hand, sustained profit-taking capped gains for the ‘Greenback’ as well as a drop in durable goods orders.
Additional speeches from Fed policymakers today could further buoy USD today.
Canadian Dollar (CAD) Ticks Higher amid Oil Price Recovery
The Canadian Dollar (CAD) edged higher on Tuesday amid a recovery in crude oil prices. Investors remained downbeat however as crude prices remained close to a 9-month low.
The currency is set to be affected by any further fluctuations in the price of oil today.
Data Releases
Sept 28th 10:35 USD Fed Daly Speech
Sept 28th 11:30 AUD Retail Sales (Aug) 0.4%
Sept 28th 16:00 EUR Gfk German Consumer Confidence (Oct) -39
Sept 28th 17:15 EUR ECB President Lagarde Speech
Sept 28th 22:35 USD Fed Bostic Speech