The US dollar suffered a blow on Monday as other global currencies started the week on a high.
The Australian dollar pulled back from a bad start to the day. It went below the 0.73 mark in the AUD/USD pair, although it recovered over the course of the day.
This recovery was significant for the currency, as it came in the face of news that the US-China trade war could be about to enter its next phase.
The story suggested that Chinese officials objected to the inclusion of a particular line in the statement given out once the Asia-Pacific Economic Cooperation (APEC) was over. The line – “We agree to fight protectionism including all unfair trade practices” – was believed by Chinese officials to be targeted at them.
The Australian dollar is often seen as deeply interlinked with the Chinese economy, so its rise on Monday was somewhat unexpected.
The US dollar index, which measures the greenback’s performance against a number of other global currencies, was down over the course of Monday by 0.3% – to 96.15.
It is now close to the 96 mark in this index, which would signify a particular low for a currency which has enjoyed a spell of strong performance recently.
There’s plenty more to hold traders’ attention as the week progresses.
Tuesday will see a significant speech from the Bank of England’s governor, Mark Carney, at 10am GMT.
At the same time, the Treasury Committee of Britain’s House of Commons will release its inflation report.
Over in the US, the afternoon will be dominated by housing information data covering October – a key barometer used by analysts when assessing the overall health of the US economy.
This is expected to be broadly positive in nature. Month on month changes for housing starts are expected to show a shift from 1,201,000 to 1,255,000, while building permits are also expected to rise from 1,241,000 to 1,267,000.
This data is out at 1.30pm GMT.
Later in the day will be a speech from the President of the Bundesbank in Germany. Jens Weidmann is due to speak at 3pm GMT.
Two Canadian central bankers are due to speak tomorrow as well. Carolyn A. Wilkins, who is Senior Deputy Governor of the Bank of Canada, will speak at 6pm GMT. Timothy Lane, who is the Bank’s Deputy Governor, will speak at 10pm GMT.
On Wednesday, US initial jobless claims data will be released earlier than usual due to the Thanksgiving holiday coming on Thursday.
It is expected to drop from 216,000 to 215,000, and the information will be released at 1.30pm GMT.
Durable goods orders covering October, will be out at the same time. These are expected to drop from their previous position of 0.8% to -2.5%.
On Thursday, Carolyn A. Wilkins from the Bank of Canada will make another speech at 2.45pm GMT.
However, the main event to look out for will be the accounts of the European Central Bank’s monetary policy meeting, which are due at 12.30pm GMT.