Australian Dollar’s (AUD) Losses Capped by Retail Sales Rebound
The risk-sensitive Australian Dollar (AUD) slipped on Tuesday as the market mood soured.
Helping to temper the Australian Dollar’s losses were buoyant retail sales figures, however. Sales growth in January rose by an above-forecast 1.9%.
Looking to today, forecast positive fourth quarter GDP figures could bolster the ‘Aussie’ if the economy grows as expected.
New Zealand Dollar (NZD) Climbs amid Weaker US Dollar
The New Zealand Dollar (NZD) benefitted from a weaker US Dollar yesterday, although the risk-sensitive ‘Kiwi’ saw these gains capped by a cautious market mood.
With no data releases today, movement in NZD is likely to be driven by any shifts in risk appetite.
Pound (GBP) Bolstered by NI Deal Optimism
The Pound (GBP) attracted a fresh wave of bids on Tuesday as UK Prime Minister Rishi Sunak provided further details of the UK-EU Northern Ireland deal.
Bets on further interest rate hikes from the Bank of England (BoE) also pushed GBP higher yesterday.
A speech from BoE Governor Andrew Bailey could prompt movement in Sterling today if markets pick up on any signals of further policy tightening.
Euro (EUR) Bolstered by Signs of Rising Inflation in Spain and France
The Euro (EUR) was bolstered by bets on further European Central Bank (ECB) rate hikes yesterday. A surprise rise to inflation in France and Spain heaped additional pressure on the central bank.
On the other hand, gains for the Euro were capped by an intensification of fighting around Bakhmut in Ukraine.
Multiple data releases from Germany could weigh on EUR today. German unemployment is set to tick higher whilst February’s inflation is expected to cool.
US Dollar (USD) Slips Despite Risk Appetite Pullback
A cautious market mood failed to lift the safe-haven US Dollar (USD) on Tuesday as a surprise fall in February’s consumer confidence figures weighed on USD.
Persistent bets on further rate hikes from the Federal Reserve kept USD’s losses in check, however.
Looking ahead for the US Dollar, the February’s ISM manufacturing sector PMI could reinforced the US Dollar losses if US factory sector growth contracts as forecast in February.
Canadian Dollar (CAD) Drops as Growth Stagnates
Fourth quarter GDP figures pulled the Canadian Dollar (CAD) lower yesterday as economic growth unexpectedly stagnated in fourth quarter of 2022. Buoyant oil prices prevented major losses for the commodity-linked ‘Loonie’, however.
The latest PMI for Canada’s manufacturing sector could see CAD fall today if output stagnates as expected.
Mar 1st 10:30 AUD GDP Growth Rate (Q4) 0.8%
Mar 1st 18:55 EUR German Unemployment Rate (Feb) 5.6%
Mar 1st 20:10 GBP BoE Gov Bailey Speech
Mar 1st 23:00 EUR German Inflation Rate (Feb) 8.5%
Mar 2nd 00:30 CAD S&P Global Manufacturing PMI (Feb) 50
Mar 2nd 01:00 USD ISM Manufacturing PMI (Feb) 48