Australian dollar (AUD) unsure despite souring mood
The Australian dollar (AUD) moved without a clear direction yesterday, with an uncertain market mood initially keeping AUD muted.
While risk sentiment deteriorated as the session went on, rising commodity prices helped cushion the resource-linked ‘Aussie’.
Looking ahead, an expected uptick in Australian consumer inflation expectations could support the ‘Aussie’ dollar today. Elsewhere, risk appetite could influence AUD.
New Zealand dollar (NZD) wavers lower as mood deteriorates
The New Zealand dollar (NZD) fluctuated yesterday, trending broadly lower overall as risk appetite faded.
With New Zealand data still thin on the ground today, NZD may be driven by the market mood. Ongoing risk aversion could undermine the ‘kiwi’.
Pound (GBP) subdued amid lack of data
The pound (GBP) slipped against its stronger peers yesterday as a lack of UK economic data left the currency without much support.
Meanwhile, UK bond yields crept higher, reigniting concerns about the UK’s fragile fiscal position.
Some policymakers from the Bank of England (BoE) are due to speak today, including BoE Governor Andrew Bailey. Any hints at an interest rate hike in November could underpin the pound.
Euro (EUR) touches fresh lows amid debt crisis fears
The euro (EUR) plunged to fresh multi-month lows yesterday as French bonds resumed their recent selloff, raising fears of a debt crisis in the Eurozone.
However, EUR managed to bounce off its worst levels, with stronger-than-forecast German industrial data potentially providing some support.
The European Central Bank’s (ECB) meeting minutes are due out today, potentially impacting EUR. However, Eurozone debt concerns could continue to drive the common currency.
US dollar (USD) climbs amid risk aversion
The US dollar (USD) rose yesterday as a souring market mood supported the safe-haven currency.
Surging government borrowing costs and rising energy prices unnerved investors, boosting the American dollar’s appeal.
Turning to today, a slight uptick in US initial jobless claims could dent USD today. Meanwhile, market risk dynamics could also continue to impact the dollar.
Canadian dollar (CAD) choppy as oil prices fluctuate
The crude-linked Canadian dollar (CAD) moved without a clear trajectory yesterday as oil prices wavered.
Amid a lack of Canadian economic data today, crude prices could remain the primary driver of CAD movement.
Data releases
10:00 AUD Consumer Inflation Expectations (Oct)
21:30 EUR ECB Monetary Policy Meeting Accounts
22:15 GBP BoE Gov Bailey Speech
22:30 USD Initial Jobless Claims (03/Oct)