Expectations are high for a US rate hike this week, but this was largely priced in last week. So far we’re seeing a slight pull-back this week, giving dollar pairs a general boost.
The New Zealand dollar is the power currency, rallying on the confirmation Adrian Orr will be the new RBNZ governor. Seen as a seasoned campaigner, the Kiwi is rallying on expectations of stability and potentially further rate hikes. The NZD/USD is up over 1.00%
The Australian dollar is on the rise as well, rallying on a general increase in risk appetite. The AUD/USD is up 0.33%.
The USD/JPY is slipping back as money flows from the US dollar into the yen. Most yen pairs with the exception of the AUD/JPY are off this morning.
The EUR/GBP is rallying again this morning after a recovery rally on Friday. Brexit negotiations are progressing, but nothing is ever straightforward in European politics.
It’s a light day for economic date, with US JOLTS job openings, the main item of note.
The AUD/USD is performing better this morning, but the longer term trend remains negative.