Australian Dollar (AUD) Strengthens on US Dollar (USD) Pullback
The Australian Dollar (AUD) moved higher across the board on Wednesday as a pullback in the US Dollar (USD) left the ‘Aussie’ able to capitalise on the ‘Greenback’s’ weakness.
Earlier in the day the Australian Dollar had faced some headwinds following a disappointing Westpac consumer confidence index for August.
An absence of economic data from Australia will see movement in the ‘Aussie’ dictated by the global market mood during today’s session.
Pound (GBP) Unable to Make an Impact on Lack of Economic Data
The Pound (GBP) was left monthly rangebound through yesterday’s trading session.
An absence of economic data paired with a lack of positive domestic coronavirus developments from the UK left Sterling without any strong directional bias.
However, the appeal of the Pound could strengthen today if preliminary GDP figures from the UK report a sharp rebound in economic growth during the second quarter of the year.
Euro (EUR) Bolstered by Jump in German Inflation Rate Data
The Euro (EUR) found itself bolstered during Wednesday’s European session as a robust German inflation reading and weakening US Dollar (USD) saw the single currency push higher.
German inflation met forecasts of 3.8% in July, as the powerhouse of the Eurozone speeds along in its economic recovery from the coronavirus pandemic.
Looking ahead, Industrial production figures from the Eurozone are expected to be the main catalyst for movement in the Euro this afternoon.
US Dollar (USD) Weakens as US Inflation Remains Stagnant
The US Dollar (USD) weakened across the board last night, following the publication of the latest US consumer price index.
Headline inflation rate remained at 5.4% in July, prompting a pullback in US Treasury yields which weakened USD exchange rates. Economists believe that the US has finally reached its peak inflation rate.
The focus for USD investors will now turn to last week’s initial jobless claims, where a continued decline in claims could bolster the US Dollar.
Canadian Dollar (CAD) Struggles as Oil Prices Weaken
The Canadian Dollar (CAD) struggled to make any gains during Wednesday’s session as oil prices continued to slide.
The US government called on the OPEC+ group to boost oil production at a faster pace as National Security Adviser Jake Sullivan warned: ‘Higher gasoline costs, if left unchecked, risk harming the ongoing global recovery. At a critical moment in the global recovery, this is simply not enough.’
A lack of economic data from Canada could today see the ‘Loonie’ open to further losses against the majors.
New Zealand Dollar (NZD) on Positive Footing as US Dollar Sours
The New Zealand Dollar (NZD) found itself supported during yesterday’s session as the strength of the US Dollar (USD) dispersed throughout the day.
Data Releases
12th Aug 16:00 GBP GDP Growth Rate (Q2) 4.8%
12th Aug 16:00 GBP Industrial Production (Jun) 0.3%
12th Aug 19:00 EUR Industrial Production (Jun) -0.2%
12th Aug 22:30 USD Initial Jobless Claims (7/Aug) 375k