- Australian Dollar weakens despite inflation uptick – Risk-off mood hurts AUD.
- Pound mixed amid lack of data – Recent pressures keep Sterling subdued.
- US Dollar firms amid gloomy trade – Stronger durable goods orders also boost USD.
- Euro slips as German consumer morale slides – USD strength also dents EUR.
Australian Dollar (AUD) Slips despite Rising Inflation
An uptick in inflation only briefly supported the Australian Dollar (AUD) during yesterday’s session.
As the day unfolded, the risk-sensitive ‘Aussie’ was dragged lower by a bearish market mood.
Turning to today, could a slowdown in Australian retail sales dent the ‘Aussie’?
New Zealand Dollar (NZD) Softens as Risk Appetite Wanes
The risk-sensitive New Zealand Dollar (NZD) also suffered losses yesterday as a souring sentiment dented demand for the ‘Kiwi’.
This morning, economists expect to see a recovery in New Zealand business confidence. Will this boost NZD exchange rates?
Pound (GBP) Wavers amid Lack of Data
The Pound (GBP) traded in a wide range yesterday as a lack of UK economic data left Sterling struggling to find a clear trajectory.
Any gains for GBP were severely capped by recent worries about the British economy and an ongoing pullback in Bank of England (BoE) interest rate hike bets.
UK economic data remains in short supply today, which could leave the Pound to struggle to find direction once again.
Euro (EUR) Dented by Weak German Data
The Euro (EUR) stumbled yesterday following troubling German data. Consumer confidence in the Eurozone’s largest economy slipped to a six-month low, coming in even weaker than forecast.
The common currency also suffered from its strong negative correlation with the US Dollar (USD), with the latter currency rallying in European trade.
Looking forward, the Euro could face headwinds this evening. Weaker Eurozone economic sentiment and a sharp fall in German inflation could weigh on EUR.
US Dollar (USD) Stays Strong amid Risk Aversion
The US Dollar extended its recent winning streak yesterday as a prevailing risk-off market mood provided the currency with safe-haven flows.
The ‘Greenback’ also benefitted from better-than-forecast US data, after durable goods orders unexpectedly expanded in August.
Tonight, the final second-quarter GDP figures for the US may affect USD. However, only a deviation from previous estimates is likely to cause significant movement.
Canadian Dollar (CAD) Rallies as Oil Marches Higher
The crude-linked Canadian Dollar (CAD) climbed yesterday as rallying oil prices boosted demand for the currency.
Canada’s latest wage data is due out tonight. Could an uptick in earnings lift CAD by boosting Bank of Canada (BoC) rate hike bets?
Data releases
Sep 28th 10:00 NZD ANZ Business Confidence (Sep) 5
Sep 28th 11:30 AUD Retail Sales (Aug) 0.3%
Sep 28th 19:00 EUR Economic Sentiment (Sep) 92.5
Sep 28th 22:00 EUR DE Inflation Rate (Sep) 4.6%
Sep 28th 22:30 CAD Average Weekly Earnings (Jul) 3.8%
Sep 28th 22:30 USD GDP Growth Rate (Q2) 2.1%
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