Australian Dollar’s (AUD) Gains Curbed by Downbeat Retail Data
The risk-sensitive Australian Dollar (AUD) benefitted from a return of risk appetite yesterday.
However, the ‘Aussie’ saw its gains capped by a slowdown in retail sales volumes. February’s sales rose by 0.2%, down from 1.8% in January.
AUD could move closer to negative territory today if February’s CPI falls as forecast. Easing inflation would likely dent Reserve Bank of Australia (RBA) interest rate rise bets, thereby hurting the ‘Aussie’.
New Zealand Dollar (NZD) Boosted by Return of Risk Appetite
A risk-on mood propped up the risk-sensitive New Zealand Dollar (NZD) on Tuesday.
The market mood recovered as fears of global financial instability eased.
NZD could consolidate its gains today if the markets see a sustained upbeat mood.
Pound (GBP) Wobbles amid BoE Bailey’s Speech
The Pound (GBP) fluctuated during yesterday’s European session as Bank of England (BoE) Governor Andrew Bailey gave evidence to the UK parliament’s Treasury Committee.
Bailey indicated that the BoE was willing to raise rates again, if necessary. However, he also sounded concerned about the recent turmoil in financial markets. This caused mixed movement in the Pound.
With market-moving UK economic data thin on the ground today, Sterling could face mixed movement once again.
Euro (EUR) Pushed Higher by Bets on Further ECB Hikes
The Euro (EUR) firmed on Tuesday despite a prevalent risk-on mood in the markets. EUR benefitted from a weaker US Dollar (USD) due to the currencies’ negative trading relationship.
The single currency was also lifted by comments from European Central Bank (ECB) policymaker Isabel Schnabel. The ECB board member signalled that she supported further rate hikes.
An expected sixth consecutive monthly rise in Germany’s consumer confidence indicator could keep the Euro climbing today.
US Dollar (USD) Loses Ground amid Risk-On Trading
A confident market mood weighed on the safe-haven US Dollar yesterday. Receding fears of a global banking crisis prompted the upbeat sentiment.
A rally in US Treasury bond yields later in the session helped to limit losses for the ‘Greenback’, while an uptick in US consumer confidence also aided the currency.
Comments from Federal Reserve policymaker Michael Barr could impact the US Dollar tonight. If Barr reiterates the Fed’s recent dovish pivot, USD could slip.
Canadian Dollar (CAD) Slips amid Profit-Taking
The Canadian Dollar (CAD) suffered from some profit-taking on Tuesday. A consecutive second day of gains for crude oil prices cushioned the commodity-linked ‘Loonie’, however.
CAD could reverse its losses today if oil prices continue to climb.
Mar 29th 10:30 AUD Monthly CPI Indicator (Feb) 7.1%
Mar 29th 16:00 EUR German GfK Consumer Confidence (Apr) -29.2
Mar 30th 00:00 USD Fed Barr Testimony