Australian Dollar (AUD) Gains as Retail Sales Surprise to the Upside
The Australian Dollar (AUD) firmed against its rivals on Wednesday. AUD found support from stronger-than-expected retail sales figures.
The upbeat data led to fresh bets on further interest rate hikes from the Reserve Bank of Australia (RBA).
With no significant data today, AUD is likely to be affected by risk appetite and rate hike bets.
New Zealand Dollar (NZD) Firms Despite Risk-Off Mood
The New Zealand Dollar (NZD) ticked higher yesterday after hitting two-year lows against the US Dollar (USD). NZD benefitted from its positive correlation to the Australian Dollar (AUD).
A forecast fall in business confidence could weigh on NZD today.
Pound (GBP) Rocked BoE Intervenes in Bond Market
The Pound traded with considerable volatility on Wednesday. Initially stumbling after the International Monetary Fund (IMF) criticised the UK government’s plans for sweeping tax cuts.
Sterling then fluctuated wildly after the Bank of England (BoE) announced that it would be intervening to help stabilise the bond market.
Speeches from BoE policymakers could prompt movement in GBP today depending on their stance.
Euro (EUR) Drops as Gazprom Treats Add to Energy Crisis Fears
The Euro (EUR) fell against many of its rivals yesterday after threats of sanctions from Gazprom led to another sharp rise in European gas prices.
The single currency also struggled after an above-forecast fall in German consumer confidence. Signals of European Central Bank (ECB) further rate hikes may have limited losses for EUR, however.
A forecast rise in Germany’s inflation for September could bolster the Euro off sustained rate hike bets. However, the impact of high inflation on consumers could cap gains.
US Dollar (USD) Boosted by Bets on another 0.75% Fed Rate Hike
The US Dollar (USD) climbed on Wednesday. The safe-haven ‘Greenback’ saw gains off the back of sustained risk-off flows, hitting twenty-year highs against a basket of its rivals.
Continued bets on hawkish action from the Federal Reserve lent further strength to the currency. A Reuters poll found most economists predicting a fourth-consecutive 0.75% rate hike from the Fed.
A speech from several Fed officials today could help USD rise. Jobless claims figures are set to continue to indicate a tight labour market could also bolster rate hike bets.
Canadian Dollar (CAD) Ticks Higher on Oil Price Stability
The Canadian Dollar (CAD) edged higher yesterday benefitted from stable crude oil prices on Wednesday.
A predicted slump in August’s GDP figures could weigh on CAD today.
Data Releases
Sep 29th 04:00 GBP BoE Dhingra Speech
Sep 29th 10:00 NZD ANZ Business Confidence (Sep) -42
Sep 29th 22:00 EUR German Inflation Rate (Sep) 9.4%
Sep 29th 22:30 CAD GDP (Aug) -0.3%
Sep 29th 22:30 USD GDP Growth Rate (Q2) 8.92%
Sep 29th 22:30 USD Initial Jobless Claims (24/Sep) 215,000