Australian Dollar (AUD) Weakens on back of Ongoing Coronavirus Outbreak
The Australian Dollar (AUD) found itself weakening throughout Wednesday’s trading session in response to a more cautious market mood.
Australia continues to deal with an ongoing coronavirus outbreak which has seen Melbourne extend its lockdown for a further two weeks.
The Australian Dollar could be open to losses today if Australia’s latest jobs figures report that domestic unemployment rose last month.
Pound (GBP) Mixed as UK Inflation Softens
Trade in the Pound (GBP) was mixed through much of Wednesday’s session as the latest inflation rate figures from the UK reported consumer prices softened more than expected in July.
The inflation rate in the UK fell to 2%, missing forecasts of 2.3% and falling for the first time since February 2021.
An absence of economic data from the UK will today see investors keeping an eye on any further domestic coronavirus developments to drive movement in GBP exchange rates.
Euro (EUR) Muted as Eurozone Inflation Prints in Line with Expectations
The Euro (EUR) struggled for direction during yesterday’s session despite the latest Eurozone inflation figures rising and meeting forecasts of 2.2%.
Euro investors have been cautious to take any risks as markets awaited the latest meeting minutes from the Federal Open Market Committee (FOMC) overnight.
Euro investors will look to see if the FOMC’s minutes have any impact on EUR exchange rates throughout today.
US Dollar (USD) Supported on back of Risk-Off Trade
The US Dollar (USD) strengthened against the majority of its peers on Wednesday as risk-off trade pushed traders towards the safe-haven ‘Greenback’.
An absence of notable economic data from the US limited the upside in the US Dollar however, with many investors reluctant to make any aggressive bets ahead of the FOMC minutes.
Later tonight the latest initial US jobless claims could provide USD exchange rates with fresh support if new claims continued to fall last week.
Canadian Dollar (CAD) Strengthens as Canadian Inflation Surges
The Canadian Dollar (CAD) strengthened during yesterday’s session on the back of a jump in Canadian inflation, which soared to a decade high in July.
New Zealand Dollar (NZD) Weakens on RBNZ Interest Rate Decision
The New Zealand Dollar (NZD) slumped during Wednesday’s trading session as the RBNZ chose to keep interest rates unchanged at 0.25%, as the rise in global coronavirus cases continues to worry policymakers.
Data Releases
Aug 19th 11:30 AUD Unemployment Rate (Jul) 5%
Aug 19th 22:30 CAD ADP Employment Change (Jul) 100k
Aug 19th 22:30 USD Initial Jobless Claims (14/Aug) 363k