Australian Dollar (AUD) Ticks Lower as Sentiment Sours
The Australian Dollar (AUD) softened yesterday as a souring market mood put pressure on the risk-sensitive ‘Aussie’.
However, AUD saw its losses limited by bets on further interest rate hikes from the Reserve Bank of Australia (RBA).
A forecast slip in December’s retail sales figures could prompt further losses in AUD today.
New Zealand Dollar (NZD) Bolstered by Fall in Trade Deficit
The New Zealand Dollar (NZD) rose on Monday, despite the downbeat tone among investors.
The ‘Kiwi’ was bolstered by upbeat trade data as New Zealand’s trade deficit fell to its lowest point in seven months.
With no significant data releases today, NZD is likely to be affected by any shifts in risk appetite.
Pound (GBP) Propped Up by BoE Rate Rise Bets
The Pound (GBP) slipped on Monday. A retreat in global risk appetite kept Sterling on the defensive.
Expectations of a 50bps rate hike from the Bank of England (BoE) cushioned GBP’s downside, however.
Sterling will see no significant data today. Any changes in market mood could drive movement in GBP. BoE rate hike bets could also affect the Pound.
Euro (EUR) Buoyed by Upbeat Economic Sentiment Reading
The Euro (EUR) climbed on Monday. EUR was pushed higher by a seven-month-high reading of Eurozone economic sentiment. A risk-off mood and European Central Bank (ECB) rate hike bets also bolstered EUR.
An unexpected fourth-quarter downturn in the German economy kept pressure on the Euro, however.
The single currency could come under increased pressure today from a forecast fourth-quarter contraction in the Eurozone’s economy. A predicted slowdown in German retail sales could also weigh on EUR.
US Dollar (USD) Bolstered by Risk-Off Mood
The US Dollar (USD) benefitted from a pullback in risk appetite on Monday. Fears of a global slowdown prompted the cautious market mood.
USD’s gains were capped by expectations of a rate hike slowdown from the Federal Reserve, however. Markets continued to price in a 25bps hike from the Fed.
Looking to today, an uptick in January’s consumer confidence figures could bolster USD if the data prints as forecast.
Canadian Dollar (CAD) Slips as Oil Prices Tumbles
The crude-linked Canadian Dollar (CAD) was pulled lower by a downturn in oil prices on Monday. Expectations of a higher supply of oil saw the commodity’s price fall.
A slight expansion in Canada’s economy could bolster CAD today if November’s figures print as forecast.
Data Calendar
Jan 31st 10:30 AUD Retail Sales (Dec) -0.3%
Jan 31st 17:00 EUR German Retail Sales (Dec) 0.2%
Jan 31st 20:00 EUR GDP Growth Rate (Q4) -0.1%
Jan 31st 23:30 CAD GDP (Nov) 0.1%
Fed 1st 01:00 USD CB Consumer Confidence (Jan) 109