Will Oceania's Currencies Rebound Amid the Russian Invasion?
25.02.2022
- Remarks by ECB President Lagarde
- University of Michigan Consumer Sentiment Index
In the U.S. currency market the previous day, the Dollar Index rose following the start of Russia’s invasion of Ukraine. The AUD/USD pair fell by approximately 140 pips, from 0.723 to 0.709. Additionally, U.S. new home sales for January, released yesterday, came in at 801,000 units—just below the market forecast of 802,000—marking the first miss in three months, though the impact on the U.S. dollar was limited.
European currencies have seen the euro continue to trade weakly amid the escalating situation in Ukraine, with the euro/yen pair falling approximately 210 pips from 130.04 to 127.91. However, the euro has been holding its ground against Oceania currencies, with the euro/Australian dollar pair trading in a range, finding support near the daily support level of 1.555.With the surge in commodity prices having paused, we will be closely watching which direction Oceania currencies take.
Today, at 4:00 PM, Germany’s Q4 GDP and Import Price Index will be released; at 4:45 PM, France’s Q4 GDP, Consumer Price Index, and Producer Price Index will be released; at 10:30 PM, U.S. Durable Goods Orders, Personal Income, and the Core PCE Deflator will be released; and at 11:00 PM, theremarks by ECB President Lagarde, and at 12:00 AM, U.S. pending home sales and the University of Michigan Consumer Sentiment Index are scheduled. With geopolitical risks escalating, we should pay close attention to the price movements of commodity-linked currencies over the weekend.
Author: Keisuke Sakurai
