Australian Dollar (AUD) Drops amid Falling Commodities Prices
A mixed market mood weighed on the risk-sensitive Australian Dollar (AUD) yesterday. A downturn in the commodities market weighed on AUD, as did heightened US-China tensions.
The ‘Aussie’ found some support from news of improving trade relations between China and Australia.
With no significant data releases, the Australian Dollar is likely to be affected by any shifts in risk appetite.
New Zealand Dollar (NZD) Falls as Retail Sales Tumble
The New Zealand Dollar (NZD) dropped on Monday as a result of mixed risk sentiment. The risk-sensitive ‘Kiwi’ also suffered from its correlation to the Australian Dollar.
Poor retail sales data also weighed on NZD. Fourth quarter retail sales unexpectedly tumbled by 4% versus a forecast rise of 3.6%.
A negative reading of business confidence in February could prompt additional losses for the ‘Kiwi’ today if the figures print as forecast.
Pound (GBP) Pushed Higher by News of UK-EU Brexit Deal
Confirmation of a UK-EU deal on the Northern Ireland protocol bolstered the Pound (GBP) yesterday. Markets responded positively to the prospect of a finalised agreement.
Bets on additional interest rate hikes from the Bank of England (BoE) also boosted Sterling.
The Pound will see no data releases today. Any developments concerning the NI protocol deal could drive movement in GBP.
Euro (EUR) Finds Support from ECB Rate Hike Expectations
Bets on further hawkish interest rate hikes from the European Central Bank (ECB) saw the Euro firm yesterday.
EUR’s gains were capped by a downturn in Eurozone economic sentiment, however. The downturn came amid continued weakness in the trading bloc’s industrial and services sectors.
The Euro is set to see no data releases today. EUR could be affected by ECB rate hike expectations and risk appetite.
US Dollar (USD) Slides after Above-Forecast Durable Goods Fall
The US Dollar (USD) slipped on Monday. The safe-haven ‘Greenback’ came under pressure from a healthy mood in the equity markets.
An above-forecast fall in durable goods orders deepened USD’s losses yesterday. January’s orders fell by 4.5%. The US Dollar was underpinned by Federal Reserve rate hike bets, however.
An expected uptick in February’s consumer confidence could help USD to regain some lost ground today.
Canadian Dollar (CAD) Benefits from Steadying Oil Prices
Steadying oil prices lifted the commodity-linked Canadian Dollar (CAD) yesterday. Crude oil benefitted from news that Russia would be halting oil exports to Poland.
Looking to today, cooler fourth quarter GDP data could pull the ‘Loonie’ lower if it prints as forecast.
Data Calendar
Feb 28th 10:00 NZD ANZ Business Confidence (Feb) -46
Feb 28th 23:30 CAD GDP Growth Rate (Q4) 0.4%
Feb 28th 23:30 CAD GDP (Dec) 0%
Mar 1st 01:00 USD CB Consumer Confidence 108.5