Australian Dollar (AUD) Falls amid Iron Ore Price Drop
The Australian Dollar (AUD) slipped on Tuesday as the commodity-linked ‘Aussie’ was pulled lower by a drop in iron ore prices.
Worries over a continued rise in China’s Covid-19 case levels also weighed on AUD yesterday, alongside a pullback in global risk appetite.
A forecast uptick in November’s retail sales could provide a boost to the Australian Dollar today. An increase in Australia’s monthly CPI indicator could also bolster AUD.
New Zealand Dollar (NZD) Creeps Higher despite Risk-Off Mood
The New Zealand Dollar (NZD) edged up on Tuesday, despite a risk-off mood.
The ‘Kiwi’ found some support from China’s economic reopening.
Looking ahead, the New Zealand Dollar could be affected by any changes in risk appetite. Will the ‘Kiwi’ finally succumb to the downbeat tone in markets?
Pound (GBP) Heads Lower as Markets Pare Back BoE Bets
The Pound (GBP) trended lower on Tuesday. Sterling came under pressure from speculation that the Bank of England (BoE) may soon slow its pace of policy tightening. Further industrial action among public sector workers also weighed on GBP.
On the other hand, an unexpected rise in December’s retail sales helped to limit major losses for the Pound.
With no significant data releases today, Sterling is likely to be affected by BoE rate hike bets and the prospect of further strikes.
Euro (EUR) Boosted by Hawkish ECB Comments
The Euro (EUR) climbed yesterday as a cautious market mood bolstered the currency. EUR was also pushed higher by hawkish comments from European Central Bank (ECB) policymaker Isabel Schnabel.
The single currency came under pressure from the Russia-Ukraine conflict, however. Worries that the war may escalate this year limited EUR’s upside.
The Euro is set to see no significant data today. EUR could see movement from further ECB rate hike bets and shifts in risk appetite.
US Dollar (USD) Climbs amid Risk Aversion
The US Dollar (USD) initially rose on Tuesday, with the safe-haven ‘Greenback’ finding support amid a cautious market mood.
USD trimmed its gains later in the session, however, after a speech from Federal Reserve Chair Jerome Powell. The speech contained little evidence of how the Fed will act at upcoming interest rate decisions.
Fed rate hike bets could prompt movement in USD today amid a lack of significant data. Market mood could also affect the ‘Greenback’.
Canadian Dollar (CAD) Bolstered by Oil Price Rise
The crude-linked Canadian Dollar (CAD) was bolstered by an uptick in oil prices on Tuesday. A weaker US Dollar capped gains for the ‘Loonie’, however.
With no data today, the Canadian Dollar is likely to be affected by any shifts in crude prices.
Data Releases
Jan 11th 10:30 AUD Monthly CPI Indicator (Nov) 7.3%
Jan 11th 10:30 AUD Retail Sales (Nov) 0.6%