Australian Dollar (AUD) Struggles in Gloomy Trade
The Australian Dollar (AUD) weakened during Tuesday’s session as the ongoing coronavirus outbreak as well as a broader slump in market risk appetite in Australia limits the appeal of the ‘Aussie’.
Yesterday morning’s Reserve Bank of Australia (RBA) meeting minutes further dented AUD exchange rates after warning that the rise in coronavirus cases across Australia has damaged the economy’s recovery.
An absence of economic data from Australia could leave AUD exchange rates open to further losses if the risk-off mood continues to prevail.
Pound (GBP) Weakens Despite Positive UK Employment Change Figures
The Pound (GBP) trended lower during yesterday’s session despite positive employment change figures from the UK.
The unemployment rate in the UK edged lower to 4.7% in June as much of the UK economy reopened from coronavirus restrictions, though the data was not enough to support the Pound.
Today all eyes will be on the latest UK consumer price index, if inflation softened as forecast in July, then Sterling could weaken further.
Euro (EUR) Mixed on Preliminary Eurozone GDP Data
Trade in the Euro (EUR) was mixed during Tuesday’s European session as preliminary GDP figures from the Eurozone confirmed the bloc’s economy expanded during the second quarter of 2021.
However, a strengthening US Dollar (USD) limited any major gains for the single currency for much of the day due to the negative correlation between the pairing.
Today’s inflation rate figures from the Eurozone are expected to be the main catalyst for movement in EUR exchange rates.
US Dollar (USD) Supported Despite Disappointing USD Retail Sales Figures
The US Dollar (USD) was supported during Tuesday’s session amidst significant safe-haven demand.
This uptick in USD exchange rates came in spite of disappointing US retail sales figures, with sales growth falling more than expected to -1.1% during July, missing forecasts of -0.3% as a rise in coronavirus cases weighed on consumer demand.
Looking ahead, the US Dollar could be forced to relinquish some of its gains later tonight, if the minutes from the Federal Reserve’s latest policy meeting reaffirms the bank’s current dovish bias.
Canadian Dollar (CAD) Dips as Oil Prices Weighed Down
The Canadian Dollar (CAD) dipped further yesterday as oil prices were weighed down by a weakening demand for oil across Asia.
Overnight the latest Canadian inflation rate figures could provide the ‘Loonie’ with much needed support.
New Zealand Dollar (NZD) Weakens on Risk-Off Trade
The New Zealand Dollar (NZD) was unable to make any gains against its biggest rivals yesterdays as a weakening market mood did little to support the risk-correlated ‘Kiwi’.
Today’s interest rate decision from the Reserve Bank of New Zealand (RBNZ) could see the New Zealand Dollar pushing higher across the board as the bank is expected to raise interest rates to 0.5%.
Data Releases
18th Aug 12:00 NZD Interest Rate Decision 0.5%
18th Aug 16:00 GBP Inflation Rate (Jul) 2.3%
18th Aug 19:00 EUR Inflation Rate Final (Jul) 2.2%
18th Aug 22:30 CAD Inflation Rate (Jul) 3.4%
19th Aug 04:00 USD FOMC Minutes