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 as Russia launched its invasion of Ukraine. The AUD/USD pair fell by approximately 140 pips, from 0.723 to 0.709.Additionally, U.S. January new home sales figures released yesterday came in at 801,000, slightly below the market forecast of 802,000—marking the first miss in three months—but the impact on the U.S. dollar was limited.
Among European currencies, the euro continues 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 is trading in a tight range against Oceania currencies, with the EUR/AUD pair consolidating near the daily support level of 1.555. With the sharp rally in commodity prices having paused, we will be closely monitoring which direction Oceania currencies will take.
Today, at 16:00, Germany’s Q4 GDP and Import Price Index will be released; at 16:45, France’s Q4 GDP, Consumer Price Index, and Producer Price Index will be released; at 22:30, U.S. Durable Goods Orders,U.S. personal income, and the U.S. core PCE deflator; at 11:00 p.m., ECB President Lagarde is scheduled to speak; and at midnight, U.S. pending home sales and the University of Michigan Consumer Sentiment Index are scheduled to be released.With geopolitical risks flaring up, we should pay close attention to the price movements of commodity-linked currencies over the weekend.
