Australian Dollar suffers losses
27 October 2016 by News DeskAustralian Dollar value was expected to hold firm after recent positive economic news.
Australian Dollar had been boosted by latest commodity prices being supportive, according to currency specialists TorFX.
Further positive Australian news included the fact that Q3 export prices have risen and import prices have fallen.
Australian Dollar losses may instead have come from the rise of the US Dollar, with renewed odds of a December interest rate hike putting panic into Australian Dollar investors.
Tomorrow’s opening Australian data will cover how prices from producers have changed in Q3, as well as the HIA new home sales result for September. The previous home sales result saw a significant rise of 6.1%.
New Zealand Dollar (NZD) – While the Australian Dollar has tumbled today, the New Zealand Dollar has been able to make moderate gains despite New Zealand recording a larger-than-forecast trade deficit in September.
With further New Zealand news limited, NZD fluctuations are likely to be inspired by risk sentiment heading into the weekend.
Australian Dollar suffers losses
Pound Sterling (GBP) – The Pound has experienced mixed movement today, initially advancing on most of its rivals following on from Q3’s preliminary GDP growth figures for the UK, which rose from 2.1% to 2.3% on the year and fell from 0.7% to 0.5% on the quarter.
In both cases, forecasts have been beaten; an annual drop was predicted, along with a greater slowdown on the quarter. However, the Pound proved unable to hold gains for long and the currency later reversed its advance against the Euro and US Dollar.
The other piece of UK data to watch out for today will be October’s Confederation of British Industry (CBI) distributive trades result, which are expected to ‘improve’ from -8 to -5.
Euro (EUR) – The Euro has been in solid demand against most of its regular peers today, owing to the latest developments at Deutsche Bank.
Germany’s largest commercial bank was recently feared to be on the verge of collapse, which would have forced the German government to make the difficult choice of letting the bank fail or bailing it out at great cost.
Today, however, Deutsche has posted a surprise profit of around €256m, which has temporarily lowered concerns about the future of the bank and also raised the value of the Euro as a result.
Other positive Eurozone news has been the figure for Spain’s Q3 unemployment rate, which fell from 20% to 18.91%. This evening’s Eurozone ecostats will consist of a pair of speeches from European Central Bank (ECB) policymakers Yves Mersch and Peter Praet.
US Dollar (USD) – The US Dollar has appreciated in line with the rising odds of a Fed interest rate hike in December.
The ‘Buck’ has also been helped out in this area by yesterday afternoon’s services and composite PMI flashes for October, which climbed in both instances.
This afternoon’s US ecostats of note will include September’s positively predicted durable goods orders, as well as the initial jobless claims result up to October 22nd. In the latter case, a slight decline from 260k to 258k is expected.
Canadian Dollar (CAD) – As the global prices of commodities continue fluctuating, the Canadian Dollar has made some slight gains against its regular rivals today. While positive, the small scale of these advances highlights the fact that the Canadian Dollar could soon drop again if prices fall on market volatility.
The latest movements for Crude oil, a key Canadian commodity, have been for slight movement upwards; this comes after a drop from almost $51 per barrel to almost $49.
Disclaimer: This update is provided by TorFX, a leading foreign exchange broker, its content is authorised for reuse by affiliates.
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