Australian Dollar (AUD) Firms as Consumer Confidence Recovers
Upbeat consumer confidence figures helped the Australian Dollar (AUD) firm on Tuesday. April’s figures rose well above forecasts.
However, softer Chinese inflation data capped AUD’s gains yesterday. Inflation in China cooled to 0.7% in March.
The ‘Aussie’ could slip today if a speech from Reserve Bank of Australia (RBA) Deputy Governor Michelle Bullock reiterates the central bank’s dovish stance.
New Zealand Dollar (NZD) Slips as Chinese Inflation Prints Softer than Expected
A slowdown in Chinese inflation weighed on the New Zealand Dollar (NZD) yesterday. The softer figures prompted concerns of a weaker recovery in the world’s second-largest economy.
The risk-sensitive ‘Kiwi’ found some support from a recovery in risk appetite, however.
An expected rise in New Zealand retail card spending could support NZD this morning. The market mood may also influence the ‘Kiwi’ Dollar.
Pound (GBP) Bolstered by Optimistic Retail Sales Data
The Pound (GBP) saw a boost on Tuesday after above-forecast retail sales data. The British Retail Consortium’s (BRC) sales figures rose by 4.9% in March versus a forecast easing to 4.2%.
Sterling saw setbacks later in the day after downbeat forecasts for the UK economy. The International Monetary Fund (IMF) predicted a 0.3% contraction in 2023.
GBP could be pushed higher by a speech from Bank of England (BoE) Governor Andrew Bailey tonight, if the central bank chief signals more rate hikes to come.
Euro (EUR) Finds Support from ECB Rate Hike Bets
A pickup in bets on additional rate hikes from the European Central Bank (ECB) lifted the Euro (EUR) on Tuesday.
Movement in EUR was limited by a downturn in February’s Eurozone retail sales, though. A return of global risk appetite also weighed on the safer single currency.
Looking ahead, a lack of data for the Euro could see it fall further if risk appetite continues to improve today.
US Dollar (USD) Pressured by Risk-On Mood
The US Dollar (USD) retreated on Tuesday ahead of crucial inflation data due out this evening. A positive risk tone also kept pressure on the safe-haven ‘Greenback’.
On the other hand, a return of Federal Reserve rate hike bets helped to prevent drastic losses for USD yesterday.
The US Dollar could recover lost ground later on if core inflation edges higher as predicted.
Canadian Dollar (CAD) Loses Ground despite Oil Price Uptick
The Canadian Dollar’s (CAD) correlation to a weaker US Dollar pulled the currency lower yesterday. However, the commodity-linked ‘Loonie’ saw its losses limited by a rise in crude oil prices.
CAD could slip further if the Bank of Canada (BoC) leaves interest rates unchanged at its meeting at midnight. Until then, crude prices could drive the Canadian Dollar.
Apr 12th 08:45 NZD Electronic Retail Card Spending (Mar) 1.5%
Apr 12th 14:45 AUD RBA Bullock Speech
Apr 12th 22:30 USD Inflation Rate (Mar) 5.2%
Apr 12th 23:00 GBP BoE Gov Bailey Speech
Apr 13th 00:00 CAD BoC Interest Rate Decision 4.5%
Apr 13th 04:00 USD FOMC Minutes