Australian dollar (AUD) buoyed by improving mood
The Australian dollar (AUD) strengthened yesterday as an improving market mood lifted the risk-sensitive ‘Aussie’.
Risk appetite increased amid a pullback in oil prices, hopes for de-escalation in the Middle East, and a recovery in tech stocks.
Today, AUD investors will focus on Australia’s latest quarterly inflation figures. If price pressures remained elevated in the third quarter, the ‘Aussie’ may attract support.
New Zealand dollar (NZD) firms in risk-on trade
The New Zealand dollar (NZD) also firmed yesterday thanks to the increased appetite for risk.
The Reserve Bank of New Zealand’s (RBNZ) interest rate decision takes centre stage today. An expected rate hike could lift the ‘kiwi’, although the bank’s forward guidance may drive most NZD movement.
Pound (GBP) falls as UK budget looms
The pound (GBP) slipped against its stronger peers yesterday as GBP investors remained cautious ahead of the UK’s Autumn Budget.
In addition, a new report revealed that the number of UK businesses in ‘significant’ financial distress hit a record high in the third quarter of 2026, raising concerns about the health of the UK economy.
With the budget being unveiled today, Sterling could face heightened volatility as markets digest the government’s fiscal plans. If markets respond positively to the policies announced, the pound could tick higher overall.
Euro (EUR) slips amid ongoing anxiety in France
The euro (EUR) weakened on Tuesday as markets remained concerned about the political instability and fiscal crisis in France, the
Eurozone’s second-largest economy.
Meanwhile, a lack of fresh Eurozone data left the single currency unsupported.
An expected deterioration in German consumer confidence could pressure the euro today, although movement may be limited ahead of the
European Central Bank’s (ECB) policy decision tomorrow.
US dollar (USD) ticks higher despite cheery mood
The US dollar (USD) firmed yesterday, with the safe-haven currency attracting demand despite the improving market mood.
USD’s upside came as AI stocks settled and US durable goods orders outpaced expectations in September.
Turning to today, the US dollar could face muted movement as USD investors await the Federal Reserve’s latest interest rate decision, due to be announced early tomorrow morning.
Canadian dollar (CAD) undermined by easing oil prices
The crude-linked Canadian dollar (CAD) slipped against its stronger peers yesterday amid a decline in global oil prices, although CAD showed resilience against some of its rivals.
Looking forward, the Bank of Canada (BoC) is expected to raise interest rates by 25 basis points later today, which could lend CAD support.
Data releases
10:30 AUD Quarterly Inflation Rate (Q3)
11:00 NZD RBNZ Interest Rate Decision
17:00 EUR German GfK Consumer Confidence (Nov)
22:30 GBP Autumn Budget
23:45 CAD BoC Interest Rate Decision