Australian Dollar (AUD) Declines after March Inflation Slump
The Australian Dollar (AUD) tumbled against its peers on Wednesday after the latest consumer price index revealed easing inflationary pressures.
The data prompted a pullback in Reserve Bank of Australia (RBA) interest rate rise bets, thereby denting the ‘Aussie’.
Today, the Australian Dollar may regain some lost ground if Chinese industrial sector profits recover as expected.
New Zealand Dollar (NZD) Pulled Lower by Risk-Off Mood
A cautious market mood saw the risk-sensitive New Zealand Dollar (NZD) weaken on Wednesday.
Confidence in the ‘Kiwi’ was also dented due to the currency’s correlation with the Australian Dollar.
Turning to today, NZD may benefit from an expected uptick in business confidence.
Pound (GBP) Bolstered by Above-Forecast Retail Data
The Pound (GBP) was boosted by better-than-expected UK retail sales data yesterday. April’s distributive trades survey rose to +5 this month, rather than dropping to 0.
Sterling also found support from persistent Bank of England (BoE) rate hike bets. Markets continued to price in a 25bps hike from the BoE at their May meeting.
A sparse data calendar for GBP could see movement in the currency motivated by BoE bets today.
Euro (EUR) Climbs amid Hawkish ECB Comments
A risk-off market mood pushed the Euro (EUR) higher on Wednesday. Hawkish comments from European Central Bank (ECB) policymaker Boris Vujcic prompted renewed rate hike bets.
Upbeat forecasts for the Eurozone’s economy provided a further boost to the Euro yesterday. ECB Vice President Luis de Guindos stated that the bloc will likely avoid a recession this year.
EUR could be buoyed today by a rise in Eurozone economic sentiment. The index for April is expected to edge higher to 99.9.
US Dollar (USD) Loses Ground as Markets Speculate on Fed Rate Cut
The US Dollar (USD) slumped on Wednesday, despite a risk-off market mood. Speculation of an imminent rate cut from the Federal Reserve dampened enthusiasm for the ‘Greenback’.
USD’s losses were cushioned by an above-forecast rise in March’s durable goods orders. New orders placed with manufacturers rose by 3.2% versus the expected increase of 0.7%.
First-quarter GDP results for the US are due out this evening. If economic growth eased more than expected at the start of this year, the ‘Greenback’ could tumble.
Canadian Dollar (CAD) Drops as Oil Prices Slide
A downturn in crude oil prices weighed on the commodity-linked Canadian Dollar (CAD) yesterday.
Looking ahead, a forecast drop in Canadian business confidence could deepen CAD’s losses.
Apr 26th 11:00 NZD ANZ Business Confidence (Apr) -41
Apr 27th 19:00 EUR Economic Sentiment (Apr) 99.9
Apr 27th 21:00 CAD CFIB Business Barometer (Apr) 53
Apr 27th 22:30 USD GDP Growth Rate (Q1) 2%
Apr 27th 22:30 USD Initial Jobless Claims (22/Apr) 248,000