AUD, NZD Exchange Rates Jump, Inflation Ahead

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  • Australian data in focus – Inflation stats set for release
  • Pound remains pressured by Brexit uncertainty – Gloomy retail figures also drag on Sterling sentiment.
  • EUR gains on German CPI figures – Strong inflation helps to offset weak Eurozone GDP figures released earlier in the session.
  • AUD and NZD jump against the majors – ‘Aussie’ and ‘Kiwi’ broadly stronger

Australian Dollar (AUD) Gains on EUR, GBP, USD

The Australian Dollar broadly strengthened on Tuesday, racking up gains of more than 0.7% against the Euro, Canadian Dollar and US Dollar.

The Aussie’s gains against the Pound were even more impressive, with AUD/GBP jumping 1.25%.

The Australian Dollar could extend these gains today if domestic inflation and China’s manufacturing figures impress.

Pound Sterling (GBP) Exchange Rates Stumble amid Ongoing Brexit Uncertainty

Despite a lack of fresh headlines it appeared that Brexit uncertainty was the main catalyst behind the Pound’s (GBP) weakness on Tuesday, with the UK currency giving up ground against the majority of its peers.

Applying further pressure to GBP exchange rates yesterday was a marked slump in UK retail activity in October, as shown by the Confederation of British Industry’s (CBI) latest distributive trade index.

In the absence of any notable data, Sterling may remain on the defensive today ahead of the Bank of England’s ‘Super Thursday’ announcements.

EUR Exchange Rates Sturdy despite Shock Drop in Eurozone GDP

While the Euro dropped against the Australian and New Zealand Dollars on Tuesday, the common currency held firm against the US Dollar and Pound despite Eurozone GDP coming in at just 0.2% in the third quarter, half the 0.4% forecast by economists. Sturdy German inflation stats limited the Euro’s losses.

However, Eurozone data could spark EUR movement today. If the Eurozone’s headline and core inflation rates accelerate in line with expectations, the Euro could strengthen.

USD Falls vs. AUD and NZD, but GBP/USD Exchange Rate Strikes Two-Month Low

The Pound US Dollar (GBP/USD) exchange rate struck a two-month low yesterday, with the pairing testing the lower boundaries of $1.27 for the first time since mid-August.

However, the ‘Greenback’s gains in the wider currency market proved largely negligible, and the US Dollar slid against the broadly stronger Australian and New Zealand Dollars.

Looking ahead, USD investors will be hoping for another solid ADP employment reading from the US, with the US Dollar potentially strengthening if the domestic workforce continued to expand at a solid pace though October.

CAD Exchange Rates Set to React to Growth Data

While the Canadian Dollar (CAD) dropped against the New Zealand and Australian Dollars on Tuesday, CAD/GBP advanced by 0.4% ahead of a testimony from Bank of Canada (BoC) Governor Stephen Poloz.

The Canadian Dollar may come under pressure today if Canada’s growth data shows a slowing in domestic output.

NZD Exchange Rates Climb on Trump Trade Optimism

The New Zealand Dollar (NZD) climbed by more than 1% against the Pound on Tuesday as recent comments from Donald Trump continued lending support. Trump predicted that the US is on track to create a ‘great’ trade deal with China. 

New Zealand Dollar exchange rates could extend gains if New Zealand’s activity outlook gauge shows improvement.

Data Released

10:50 JPY Industrial Production (Sep)
11:00 NZD ANZ Activity Outlook (Oct)
11:01 GBP GfK Consumer Confidence (Oct)
11:30 AUD CPI (3Q)
12:00 CNY Manufacturing PMI (Oct)
18:00 EUR German retail sales
21:00 EUR Eurozone Consumer Price Index
23:15 USD ADP Employment Change

Post by TorFX

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