Australian Dollar (AUD) Mixed on Underwhelming Business Confidence Index
Trade in the Australian Dollar (AUD) was mixed on Tuesday, in response to a disappointing NAB business confidence index.
The June index saw an upward revision to 11, though this was followed by a dip to -8 in July, as much of Australia deals with an ongoing coronavirus outbreak. This dented the appeal of the Australian Dollar for much of the day.
If the Westpac consumer confidence index softens this morning the ‘Aussie’ could face additional pressure today.
Pound (GBP) Muted Overnight Retail Spending Figures Disappoint
The Pound (GBP) softened in Tuesday’s European session after retail figures from the British Retail Consortium (BRC) showed a slowdown in spending in the UK.
Helen Dickinson, chief executive of the BRC, commented on the latest figures, saying: ‘The lifting of restrictions did not bring the anticipated in-store boost, with the wet weather leaving consumers reluctant to visit shopping destinations.’
In the absence of notable data releases during Wednesday’s European session, GBP movement will likely continue being driven by any further domestic coronavirus developments from the UK as investors await Thursday’s GDP figures.
Euro (EUR) Struggles on back of Lower Economic Sentiment Index
The Euro (EUR) struggled during yesterday’s session in response to a decline in the German ZEW economic sentiment index.
The index slumped from 63.3 to 40.4 for August, suggesting that confidence within the Eurozone’s powerhouse economy is weakening on the back of coronavirus worries. The Eurozone’s own economic sentiment index also softened more than expected.
German inflation rate figures are expected to be the main catalyst for movement in the single currency today, a rise in inflation could provide EUR exchange rates with much needed support.
US Dollar (USD) Rangebound as US Business Confidence Softens
The US Dollar (USD) saw a mixed performance against the majors as the NFIB business optimism index softened during July.
The business confidence index softened from 102.5 to 99.7 as concerns over the delta variant of coronavirus dented confidence in the US’s economic recovery.
US inflation rate figures are expected to drive movement in the ‘Greenback’ overnight, if consumer prices continue to outperform expectations, the US Dollar could accelerate sharply.
Canadian Dollar (CAD) Rebounds as Oil Prices Rally
The Canadian Dollar (CAD) appreciated sharply during yesterday’s trading session, as the appeal of the oil-sensitive ‘Loonie’ was bolstered by a 3% surge in WTI crude prices.
New Zealand Dollar (NZD) Steady on Market Mood
The New Zealand Dollar (NZD) had been steadily trading for much on Tuesday as a mixed US Dollar caused the risk-sensitive ‘Kiwi’ edge higher.
Data Releases
11th Aug 10:30 AUD Westpac Consumer Confidence Index (Aug) 109
11th Aug 16:00 EUR German Inflation Rate (Jul) 3.8%
11th Aug 22:30 USD Inflation Rate (Jul) 5.3%