Australian Dollar Firms as Consumer Confidence Soars to 10-Year High

Australian Dollar (AUD) Firms as Consumer Confidence Soars

The Australian Dollar (AUD) strengthened on Tuesday, with the appeal of the ‘Aussie’ being bolstered by consumer confidence soaring to a decade high and the news that the Queensland coronavirus restrictions will be lifted early.

These gains then accelerated overnight as broad USD weakness bolstered market risk appetite.

In the spotlight today will be Australia’s latest jobs report. Will another drop in domestic unemployment last month help to bolster the Australian Dollar?

Pound (GBP) Flat amidst Vaccine Rollout Concerns

The Pound (GBP) struggled to find direction during yesterday’s session amidst the lack of any clear catalyst.

This left GBP investors to stew over concerns about the UK’s vaccination programme, and fears that the recent decision to stop the use of the AstraZeneca for under 30s could hurt the rollout and potentially even lead to delays to the government’s easing plans.

In the absence of any notable GBP data releases today, it’s likely investors could continue to look to UK coronavirus developments for fresh impetus for movement.

Euro (EUR) Lifted by USD Weakness

The Euro (EUR) ticked higher yesterday, initially buoyed by the weakness of the US Dollar (USD) as well as a slightly better-than-expected Eurozone industrial production reading.

However, these gains were capped later in the session after the European Central Bank (ECB) President Christine Lagarde warned that Europe is ’clearly still dealing with the pandemic crisis’.

Turning to today’s session, Germany’s latest CPI figures may offer some modest support to the single currency after confirming inflation in the Eurozone’s largest economy accelerated last month.

US Dollar (USD) Subdued as Treasury Yields Weaken

The US Dollar (USD) was mostly muted through Wednesday’s European trading session as a dip in US Treasury yields limited the appeal of the ‘Greenback’.

The US Dollar also weakened ahead of a speech by Federal Reserve Chair Jerome Powell on the expectations he will reiterate the bank’s current dovish bias.

Looking ahead, the focus for USD investors will be the publication of the latest US retail sales figures. Economists are forecasting a sharp rebound in sales growth last month, which if correct, could see the US Dollar appreciate overnight.

Canadian Dollar (CAD) Underpinned by Robust Oil Prices

The Canadian Dollar (CAD) edged higher on Wednesday, with the oil-linked ‘Loonie’ able to draw support as a 2% rise in WTI crude prices reflected well on the currency.

New Zealand Dollar (NZD) Strengthens as RBNZ Maintains Status Quo

The New Zealand Dollar (NZD) also strengthened on Wednesday, after the Reserve Bank of New Zealand (RBNZ) left its monetary policy unchanged following its latest meeting.

Data Releases

Apr 15th 11:30 AUD Unemployment Rate (Mar) 5.7%
Apr 15th 16:00 EUR German Inflation Rate (Mar) 1.7%
Apr 15th 22:30 USD Retail Sales (Mar) 5.9%
Apr 15th 22:30 USD Initial Jobless Claims (10/APR) 700,000
Apr 15th 22:15 USD Industrial Production 2.8%

Louisa Heath

louisa.heath@torfx.com


Related