Australian Dollar (AUD) Bolstered by Hawkish RBA Interest Rate Meeting
The Australian Dollar (AUD) rose yesterday following the Reserve Bank of Australia’s (RBA) 25bps interest rate hike.
The RBA also signalled their hawkish desire to hike rates further, with fresh rate rise bets boosting AUD exchange rates.
AUD will see no significant data releases today. The ‘Aussie’ may be affected by shifts in risk appetite and RBA bets.
New Zealand Dollar (NZD) Pulled Lower by Cautious Market Mood
The New Zealand Dollar (NZD) slipped on Tuesday as a risk-off mood weighed on the risk-sensitive ‘Kiwi’.
A downturn in the commodities market also impacted the resource-linked currency.
With no data today, movement in NZD is likely to be driven by the market mood.
Pound (GBP) Slips as Expectations of BoE Slowdown Grow
The Pound (GBP) fell on Tuesday. Sterling was pulled lower by persistent expectations that the Bank of England (BoE) would slow its pace of policy tightening.
On the other hand, drastic losses for GBP were limited by evidence of stabilising prices in the UK housing market.
BoE rate hike bets could continue to drive movement in the Pound amid a lack of major data today.
Euro (EUR) Falls after German Industrial Slump
The Euro (EUR) fell on Tuesday. A larger-than-forecast fall in German industrial output weighed on EUR, as it pointed to a slowdown in the German economy.
Comments from European Central Bank (ECB) officials also weighed on EUR yesterday. Policymaker Francois Villeroy de Galhau remained cagey about future rate hikes following the March meeting, raising expectations of a policy slowdown.
Looking ahead for the Euro, the single currency may be affected by ECB rate hike bets.
US Dollar (USD) Rises amid Retreat in Risk Appetite
The US Dollar (USD) saw gains on Tuesday as the safe-haven ‘Greenback’ found some support from a cautious market mood.
A strong rise in US economic optimism may have added to USD’s gains in the early hours of this morning.
Today, a lack of data may see risk appetite drive USD. Speeches from multiple Federal Reserve policymakers could push USD higher overnight if they signal support for further rate hikes.
Canadian Dollar (CAD) Benefits from Oil Price Recovery
The crude-linked Canadian Dollar (CAD) was bolstered by rising oil prices on Tuesday. A narrowing in December’s trade deficit also boosted CAD.
With no data releases today, the ‘Loonie’ is likely to be affected by any shifts in oil prices.
Data Releases
Feb 9th 00:15 USD Fed Williams Speech
Feb 9th 01:00 USD Fed Barr Speech