Australian Dollar (AUD) Struggles in Spite of Positive Data
Tuesday saw the Australian Dollar (AUD) struggle for support, despite positive data releases.
While consumer and business confidence both improved, and the market mood was upbeat, the ‘Aussie’ was unable to capitalise on the upbeat news.
Looking ahead, Reserve Bank of Australia (RBA) Governor Philip Lowe is scheduled to speak this afternoon. If he takes a hawkish stance, the ‘Aussie’ could rally.
New Zealand Dollar (NZD) Dips as Investors Await RBNZ Decision
The New Zealand Dollar (NZD) fell against many of its peers yesterday as investors looked ahead to the Reserve Bank of New Zealand’s (RBNZ) interest rate decision.
The consensus is that the bank will opt to leave rates unchanged, leaving the ‘Kiwi’ with little support as investors move elsewhere.
At noon, the RBNZ are set to announce their latest interest rate decision. If they press ahead with a pause, the ‘Kiwi’ could plummet.
Pound (GBP) Climbs on Red-Hot Wage Growth Data
Off the back of surprisingly strong wage growth, the Pound (GBP) enjoyed notable support during Tuesday’s session.
Average earnings printed at a record high. With wage growth showing little sign of cooling down, Bank of England (BoE) rate hike bets escalated and strengthened Sterling.
Elevated rate hike bets could keep Sterling afloat today despite a lack of UK data releases.
Euro (EUR) Damaged by Germany’s Pessimistic Economic Outlook
On Tuesday, the Euro (EUR) weakened following a firm decline in German economic sentiment over July.
The ZEW economic sentiment index printed at -14.6, down from -8.5 and below forecasts of -10.5. This reinforced increasing concern over the health of the bloc’s largest economy.
Tonight, European Central Bank (ECB) Chief Economist Philip Lane is due to speak. If the rate setter sounds dovish, EUR could face further selling pressure.
US Dollar (USD) Mixed Ahead of US Inflation Release
The US Dollar (USD) endured mixed trade during yesterday’s session as USD investors seemed hesitant ahead of the upcoming US consumer price index.
A tepid market mood added to the safe-haven currency’s uncertain movement, as did some choppiness in the US bond markets.
Tonight, June’s consumer price index is scheduled to print. Will cooldowns in both core and headline inflation see USD slide?
Canadian Dollar (CAD) Quiet Ahead of BoC Rate Decision
Quiet trade struck the Canadian Dollar (CAD) yesterday, as investors remained coy ahead of the Bank of Canada’s (BoC) interest rate decision.
The ‘Loonie’ could continue to trade quietly today, ahead of the rate decision at midnight. If the BoC hikes rates as expected, CAD could rise.
Data Releases
Jul 12th 12:00 NZD RBNZ Interest Rate Decision 5.5%
Jul 12th 13:10 AUD RBA Governor Lowe Speech
Jul 12th 22:30 USD Inflation Rate (Jun) 3.1%
Jul 12th 23:45 EUR ECB Lane Speech
Jul 13th 00:00 CAD BoC Interest Rate Decision 5%