Australian dollar (AUD) muted amid lack of data
The Australian dollar (AUD) was mixed yesterday as an uncertain market mood and lack of Australian data left the currency rudderless.
While AUD edged up against weaker peers and softened against stronger rivals, overall movement was limited.
This morning, a speech from Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser could influence the ‘Aussie’. Meanwhile, risk appetite could also impact AUD.
New Zealand dollar (NZD) buoyed by RBNZ bets
The New Zealand dollar (NZD) ticked higher yesterday as markets increased bets that the Reserve Bank of New Zealand (RBNZ) will raise interest rates when it sets policy next week.
Market risk dynamics are likely to be the primary driver of NZD movement today, with the ‘kiwi’ poised to weaken if a cautious mood prevails.
Pound (GBP) climbs as UK jobs data boosts rate hike bets
The pound (GBP) marched higher yesterday as stronger-than-forecast jobs data boosted Bank of England (BoE) interest rate hike speculation.
UK unemployment unexpectedly fell in the three months to August, fuelling bets that the BoE will raise rates in November and deliver three more hikes next year.
Looking ahead, the UK’s latest consumer price index takes centre stage for GBP investors today. If headline and core inflation rose in September, as expected, the pound could strengthen.
Euro (EUR) slips following disappointing German data
The euro (EUR) fell yesterday after Germany’s latest ZEW economic sentiment index showed a larger-than-forecast deterioration in October.
EUR was also pressured by social unrest in multiple European countries and the ongoing French debt crisis, although the currency was cushioned by its negative correlation with the weakening US dollar (USD).
Eurozone data is thin on the ground today, potentially leaving EUR investors to focus on the situation in France. Ongoing political instability and concerns about a fiscal crisis may weigh on the common currency.
US dollar (USD) softens amid US market and political jitters
The US dollar faced pressure yesterday as continued weakness in US equities and political jitters ahead of the midterm elections weighed on the currency.
In addition, ADP’s latest weekly employment change showed jobs growth slowing in the US, further undermining the ‘greenback’.
With US data in short supply today, wider market trends could continue to influence the US dollar, potentially denting USD if these concerns persist.
Canadian dollar (CAD) firms as oil hits multi-month highs
The commodity-linked Canadian dollar (CAD) rose yesterday as Brent crude hit fresh multi-month highs, although it trimmed its gains in the evening as oil prices pulled back from their peaks.
Oil price movements may continue driving the Canadian dollar today amid a lack of domestic data. CAD could rise if crude prices remain elevated.
Data releases
08:30 AUD RBA Hauser Speech
16:00 GBP Inflation Rate (Sep)
23:00 GBP BoE Gov Bailey Speech