Australian Dollar (AUD) Slips as China’s Industrial Profits Tumble
The Australian Dollar (AUD) came under pressure after poor Chinese industrial sector data yesterday. Industrial profits fell by 22.9% in the world’s second-largest economy.
However, the risk-sensitive ‘Aussie’ was underpinned by a risk-on impulse in markets. Investors were cheered by the recovery in the US and European banking sectors.
Looking to today, AUD could fall further if retail sales cool as forecast.
New Zealand Dollar (NZD) Cushioned by Risk-On Mood
Poor profit data for China’s industrial sector pulled the New Zealand Dollar (NZD) lower on Monday.
On the other hand, a return of risk appetite limited losses for the risk-sensitive ‘Kiwi’.
NZD may be bolstered by the market mood today if it remains upbeat.
Pound (GBP) Buoyed by Positive Retail Sector Data
The Pound (GBP) was lifted by optimistic data for the UK’s retail sector yesterday. The Confederation of British Industry’s (CBI) distributive trades survey eased from 2 to 1, versus the forecast fall to -6.
Signs of stability in the European banking sector also helped prop up Sterling yesterday.
A speech from Bank of England (BoE) Governor Andrew Bailey could help GBP consolidate its gains today if the BoE chief signals the possibility of more interest rate rises.
Euro (EUR) Inspired by Surprise Rise in German Business Confidence
The Euro (EUR) was lifted by an unexpected rise in German business confidence on Monday. Morale improved for the fifth consecutive month in March.
Bets on further interest rates hikes from the European Central Bank (ECB) lent additional support to EUR.
With Eurozone data thin on the ground today, the single currency could be vulnerable to losses.
US Dollar (USD) Under Pressure from Riskier Market Mood
A return of risk appetite saw the safe-haven US Dollar (USD) weaken on Monday.
A rally in US Treasury bond yields helped to limited losses for the ‘Greenback’ though.
The US Dollar could slip lower after speeches from multiple Federal Reserve officials today, if the rate setters reiterate a potential dovish pivot from the US central bank.
Canadian Dollar (CAD) Boosted by Oil Price Rise
Rising oil prices pushed the commodity-tied Canadian Dollar (CAD) higher on Monday. Signs of stability in the US banking sector lent support to crude prices.
A continued recovery in oil prices could push the ‘Loonie’ higher today.
Data Calendar
Mar 28th 07:00 USD Fed Jefferson Speech
Mar 28th 10:30 AUD Retail Sales (Feb) 0.1%
Mar 28th 18:45 GBP BoE Gov Bailey Speech
Mar 28th 00:00 USD CB Consumer Confidence 101
Mar 29th 00:00 USD Fed Barr Testimony