Australian Dollar (AUD) Bolstered by Consumer Confidence Resilience
The Australian Dollar (AUD) climbed yesterday. The ‘Aussie’ benefitted from a risk-on mood and an uptick in consumer confidence.
A slump in business confidence kept AUD’s gains limited, however. A surge in Covid-19 cases in China also weighed on the ‘Aussie’.
Looking ahead, a speech from Reserve Bank of Australia (RBA) Governor Philip Lowe could drive movement in the currency today. A cautious stance from Lowe could weigh on AUD.
New Zealand Dollar (NZD) Bolstered by Risk-On Mood
The New Zealand Dollar (NZD) soared on Tuesday. The ‘Kiwi’ benefitted from a return of global risk appetite amid a plummeting US Dollar (USD).
Looking ahead, a widening in NZ’s current account deficit could weigh on the Kiwi if today’s figures print as forecast.
Pound (GBP) Climbs amid Signs of Persistent Wage Growth
The Pound (GBP) rose on Tuesday despite mixed jobs data. Sterling saw a boost from an above-forecast rise in regular pay of 6.1% in the August-October period.
An uptick in unemployment pointed to a cooling labour market however, which weighed on Sterling. The start of fresh rail strikes also dented confidence in the Pound.
Looking ahead, a forecast slip in November’s inflation could drag on GBP exchange rates if the data weakens Bank of England (BoE) rate hike bets.
Euro (EUR) Slips as German Inflation Cools
The Euro (EUR) dropped on Tuesday amid resurgent risk appetite. The final reading of Germany’s November inflation also weighed on EUR as it confirmed a slip to 10%.
A stronger-than-expected recovery in German economic sentiment helped to limit the single currency’s losses, however.
A forecast downturn in the Eurozone’s manufacturing sector could weigh on the Euro if today’s figures print as forecast.
US Dollar (USD) Plummets after Cooler Inflation Data
The US Dollar (USD) nosedived on Tuesday after November’s inflation figures fell by more-than-forecast.
The inflation data largely cemented expectations of a more cautious interest rate hike from the Federal Reserve this week. The paring back of rate hike bets weighed on USD.
The Fed’s forward guidance alongside its interest rate decision will be the key focus of markets today. A dovish pivot from the Fed could keep pressure on the currency.
Canadian Dollar (CAD) Slumps Despite Oil Price Rise
The Canadian Dollar (CAD) was pulled lower on Tuesday by a drastic fall in the US Dollar. The currency saw losses limited by rising oil prices, however.
The final reading of October’s manufacturing sales figures could see CAD climb if they confirm a rise in sales growth.
Data Calendar
Dec 14th 07:45 NZD Current Account (Q3) NZ$-10bn
Dec 14th 08:30 AUD RBA Gov Lowe Speech
Dec 14th 17:00 GBP Inflation Rate (Nov) 10.9%
Dec 14th 20:00 EUR Industrial Production (Oct) -1.5%
Dec 15th 05:00 USD Fed Interest Rate Decision 4.5%
Dec 15th 05:30 USD Fed Press Conference