Australian Dollar (AUD) Pulled Lower by Inflation Cooldown
Evidence of cooling inflation weighed on the Australian Dollar (AUD) yesterday. February’s consumer price index, a gauge of monthly inflation, eased from 7.4% to 6.8%.
The figures added to expectations of a rate hike pause from the Reserve Bank of Australia (RBA).
Softer rate hike bets could continue to drive the Australian Dollar lower today.
New Zealand Dollar (NZD) Slips despite Risk-On Mood
The New Zealand Dollar (NZD) lost ground on Wednesday due to its correlation to the Australian Dollar.
However, the risk-sensitive ‘Kiwi’ was shored up by a risk-on mood and a positive tone in the commodity markets.
A forecast rise in the ANZ business confidence index could help NZD to recover some lost ground today.
Pound (GBP) Uncertain in Absence of Data
A lack of significant data saw the Pound (GBP) fluctuate yesterday and kept the currency trading in a narrow range.
On the other hand, Sterling was underpinned by a positive mood in European markets.
Looking ahead, a continued lack of data today could see GBP face more directionless trade.
Euro (EUR) Firms as German Consumer Confidence Improves
An improvement in German consumer confidence prompted the Euro (EUR) to edge higher on Wednesday. Hawkish comments from European Central Bank (ECB) officials also bolstered EUR.
However, the single currency saw its gains curbed by a return of global risk appetite.
The Euro could come under pressure today if German inflation slips as forecast. The data could prompt bets on a slower pace of rate hikes from the ECB.
US Dollar (USD) Wobbles amid Upbeat Mood and Rising Treasury Yields
The US Dollar (USD) faced some turbulence on Wednesday as the risk-on market impulse dampened demand for the safe-haven currency.
USD found its losses limited, however, thanks to an uptick in US Treasury yields.
Turing to today, if jobless claims remain close to previous lows, it could boost USD. Fourth-quarter GDP figures could also impact USD, if they differ from previous estimates.
Canadian Dollar (CAD) Finds Support from Oil Price Rise
A continued rally in crude oil prices pushed the commodity-linked Canadian Dollar (CAD) higher yesterday.
CAD could rise today if oil prices continue their upward trajectory.
Mar 30th 10:00 NZD ANZ Business Confidence (Mar) -40
Mar 30th 19:00 EUR Economic Sentiment (Mar) 99.8
Mar 30th 22:00 EUR German Inflation Rate (Mar) 7.3%
Mar 30th 22:30 USD Initial Jobless Claims (25/Mar) 196,000
Mar 30th 22:30 USD GDP Growth Rate (Q4) 2.7%