Australian Dollar (AUD) Recovers as Market Mood Improves
After initially slipping, the risk-sensitive Australian Dollar (AUD) managed to make gains on Monday as the market mood improved.
The bullish tone in markets was limited, however, amid growing geopolitical unease.
The focus today is on the latest Australian consumer and business confidence indicators. Forecast improvements in both data releases could see the ‘Aussie’ strengthen.
New Zealand Dollar (NZD) Firms following Strong Services Data
The New Zealand Dollar (NZD) also climbed on Monday, initially boosted by a stronger-than-expected recovery in New Zealand service sector activity.
The risk-on tilt in markets also lifted the risky ‘Kiwi’.
Today, an expected uptick in business inflation expectations could prompt Reserve Bank of New Zealand (RBNZ) interest rate rise bets, thereby boosting NZD.
Pound (GBP) Ticks Higher amid Risk-On Trade
The Pound (GBP) was mixed on Monday, firming against its safer peers amid the risk-on run in markets.
However, ongoing concerns about the UK economy limited GBP’s gains.
Looking ahead, the UK’s latest labour market report could impact Sterling. Will another robust result boost Bank of England (BoE) rate hike expectations?
Euro (EUR) Slips amid Russia-Ukraine Concerns
The Euro (EUR) fell yesterday as worries about the Russia-Ukraine crisis put some pressure on the common currency.
EUR’s downside was cushioned, however, thanks to its negative correlation with a weakening US Dollar (USD).
The latest GDP growth rate estimate for the Eurozone could impact the Euro today, if it differs from preliminary readings.
US Dollar (USD) Declines as Markets Remain Upbeat
The US Dollar faced selling pressure yesterday as an increasingly upbeat mood dented the safe-haven currency’s appeal.
USD investors were also seemingly cautious ahead of today’s inflation rate reading.
If US inflation continued to cool dramatically last month, the ‘Greenback’ may slide. However, a stronger-than-expected reading could boost USD.
Canadian Dollar (CAD) Falls Due to USD Correlation
The Canadian Dollar (CAD) slipped yesterday as the ‘Loonie’ suffered from its positive correlation with a weaker US Dollar.
Amid a lack of Canadian economic data today, oil price movements may drive the crude-linked currency.
Data Releases
Feb 14th 09:30 Westpac Consumer Confidence Index (Feb) AUD 85.3
Feb 14th 10:30 NAB Business Confidence (Jan) AUD 1
Feb 14th 12:00 Business Inflation Expectations (Q1) NZD 4%
Feb 14th 17:00 Unemployment Rate (Dec) GBP 3.7%
Feb 14th 20:00 GDP Growth Rate QoQ 2nd Est (Q4) EUR 0.1%
Feb 14th 23:30 Inflation Rate YoY (Jan) USD 6.2%