Australian dollar (AUD) underpinned by improving mood
The Australian dollar (AUD) ticked higher against most of its peers last week, with the currency catching bids amid improving market risk appetite.
Sentiment improved amid reports the US and Iran held discussions about a potential ‘phased’ deal to reopen the Strait of Hormuz.
Turning to the start of this week, movement in the ‘Aussie’ may be limited as AUD investors brace for the Reserve Bank of Australia’s (RBA) interest rate decision on Tuesday.
New Zealand dollar (NZD) dented by easing RBNZ rate bets
The New Zealand dollar (NZD) trended broadly lower on Friday, as the currency was knocked by a more dovish repricing of Reserve Bank of New Zealand (RBNZ) interest rate expectations.
In the absence of any notable domestic data, expect movement in the ‘kiwi’ to be tied to investor risk sentiment as markets reopen this week.
Pound (GBP) enjoys upbeat end to the week
The pound (GBP) closed last week’s session on a positive note, ticking higher against the majority of its peers.
There was no clear catalyst for the gains, however, which left Sterling’s recovery fairly modest in scope.
Meanwhile, a sparse UK economic calendar will likely leave movement in the pound to be driven by wider currency trends through the start of this week.
Euro (EUR) subdued as German consumer confidence weakens
The euro (EUR) was muted through Friday’s session, following the publication of Germany’s latest consumer confidence index.
The survey reported a deterioration of household sentiment in October, with morale sliding to a five-month low amid growing income concerns.
Looking ahead, the euro may struggle to find direction at the start of today’s session, in the absence of any notable Eurozone economic indicators.
US dollar (USD) pressured by yen intervention risk
The US dollar (USD) fell back at the end of last week, with USD demand being tempered by a sharp appreciation of the Japanese Yen (JPY) amid fresh intervention speculation.
USD demand was also limited by data showing that US durable goods orders stalled in August.
Coming up, the ‘greenback’ may tread water today, ahead of several high-impact US economic releases later in the week.
Canadian dollar (CAD) struggles as oil prices soften
The Canadian dollar (CAD) slipped on Friday, as a pullback in oil prices undermined the appeal of the commodity-linked currency.
Expect the ‘loonie’ to remain on the defensive at the start of this week if we see a further moderation of oil prices.