Australian Dollar (AUD) Falls amid Risk-Off Mood
The Australian Dollar (AUD) dropped on Wednesday. The ‘Aussie’ was initially buoyed by a risk-on mood, although a retreat in risk appetite later in the day weighed on the currency.
An uptick in iron prices underpinned the currency amid news of a $2bn iron ore project in Western Australia.
If unemployment figures remain at record-lows, then it could bolster the currency. On the other hand, the Reserve Bank of Australia’s (RBA) latest bulletin could reinforce its dovish tone and weigh on the ‘Aussie’.
New Zealand Dollar (NZD) Boosted by Weaker US Dollar
The New Zealand Dollar (NZD) climbed yesterday as a weaker US Dollar (USD) lent support to the currency.
A forecast recovery in GDP growth could help bolster NZD if today’s figures print as forecast.
Pound (GBP) Climbs as Core Inflation Rise Increases BoE Rate Hike Bets
The Pound (GBP) made gains on Wednesday despite a surprise fall in headline inflation. Easing fuel prices were the main cause behind the fall.
Core inflation rose however, increasing odds of an interest rate hike from the Bank of England (BoE) and bolstering the Pound.
There is no significant data for Sterling today. Bets on the currency are likely to remain limited amid the period of national mourning.
Euro (EUR) Slips as Eurozone Recession Fears Grow
The Euro (EUR) slipped against its rivals on Wednesday. An above-forecast drop in industrial production in July added to Eurozone recession fears and weighed on EUR.
Soaring energy prices also kept pressure on the Euro. A risk-off mood lent some support to the single currency, however.
A further widening of the Eurozone’s trade deficit could add to the single currency’s woes if figures print as forecast today.
US Dollar (USD) Tumbles Despite Rise to Core PPI
The US Dollar (USD) fell yesterday amid some profit taking from investors after USD exchange rates skyrocketed on Tuesday on the back of above-forecast inflation.
A drop in headline PPI also weighed on USD. On the other hand, a rise to core producer price inflation helped limit losses for the US Dollar amid fresh rate hike bets.
If retail sales figures report another stalling of sales growth in August, then the data could push USD lower. A drop in initial jobless claims could also see the currency fall.
Canadian Dollar (CAD) Dips amid Oil Price Drop
The Canadian Dollar (CAD) slipped today as oil prices fell. Crude prices dropped as the prospect of higher interest rates prompted fears of reduced demand. A risk-off mood also harmed the currency.
With no data today, the commodity-tie ‘Loonie’ is set to be affected by movements in the price of oil.
Data Releases
Sept 15th 08:45 NZD GDP Growth Rate (Q2) 1%
Sept 15th 11:30 AUD Unemployment Rate (Aug) 3.4%
Sept 15th 11:30 AUD RBA Bulletin
Sept 15th 22:30 USD Retail Sales (Aug) 0%
Sept 15th 22:30 USD Initial Jobless Claims (10/Sep) 226,000