Australian Dollar (AUD) Falls on NAB Data
The Australian Dollar (AUD) weakened against its peers on Tuesday as the National Bank of Australia (NAB) released its business confidence index, revealing a fall of 4 points in May.
Also weighing upon the ‘Aussie’ were fears that tighter monetary policy could trigger a global recession.
Today, Westpac consumer confidence may further weaken AUD exchange rates, as optimism is forecast to have fallen by 0.5% in June so far.
New Zealand Dollar (NZD) Subdued in Risk-Off Trade
The New Zealand Dollar (NZD) fell against several peers yesterday as a risk-off mood ultimately prevailed.
Today, NZD may be affected by bullish bets ahead of tomorrow’s GDP data. GDP growth is forecast to have increased in Q1 by 0.6%.
Pound (GBP) Slumps on Economic and Brexit Concerns
The Pound (GBP) plunged on Tuesday as UK jobs data reported a rise in unemployment and another fall in real wages, easing Bank of England (BoE) rate hike bets.
Further undermining Sterling sentiment were fresh Brexit jitters as the UK government published its bill aimed at unilaterally altering the Northern Ireland protocol.
The increased risk of a UK-EU trade war could see the Pound continue to trend lower through today’s session.
Euro (EUR) Firms on Hawkish ECB Comments
The Euro (EUR) climbed through yesterday’s session on hawkish comments from European Central Bank (ECB) policymaker Klaas Knot.
Knot suggested the bank is likely to pursue a 50 basis point rate hike in September and that further hikes in October and December may be warranted.
Industrial production and trade data for the Euro area could affect EUR rates today, lending possible support if the former climbed in April as expected.
US Dollar (USD) Climbs Ahead of Fed Decision
The US Dollar (USD) trended up on Tuesday, buoyed in part by expectations of a hawkish move from the Federal Reserve.
Despite fears that aggressive policy tightening action could threaten the global economic recovery, USD investors remain optimistic on the prospect of safe-haven tailwinds should markets be spooked.
Today, trading will likely be dominated by the Fed’s decision, although US retail sales data is also featured in the docket.
Canadian Dollar (CAD) Wavers as Oil Prices Lift
The Canadian Dollar (CAD) found some support yesterday as crude oil prices rose, adding 0.3% in daily trade. The commodity-linked ‘Loonie’ generally enjoys tailwinds as WTI increases in value.
Data Releases
Jun 15th 08:45 NZD Current Account (Q1) NZ$-5.5bn
Jun 15th 10:30 AUD Westpac Consumer Confidence Change (Jun) -0.5%
Jun 15th 19:00 EUR Balance of Trade (Apr) €-23bn
Jun 15th 19:00 EUR Industrial Production (Apr) 0.5%
Jun 15th 22:30 USD Retail Sales (May) 0.2%
Jun 15th 22:30 USD NY State Manufacturing Index (Jun) 3