Australian Dollar (AUD) Stumbles as Risk Appetite Wanes
With Monday yielding a quiet session across markets, the Australian Dollar (AUD) initially remained stuck in narrow boundaries.
However, a souring market mood towards the end of the European trading hours saw the risk-sensitive ‘Aussie’ stumble.
Today, investors are looking to the Reserve Bank of Australia’s (RBA) meeting minutes. After former Governor Philip Lowe’s assertion that inflation has peaked, markets expect a dovish tilt from the RBA. This could weaken the ‘Aussie’ over today’s session.
New Zealand Dollar (NZD) Wavers amid Shifting Market Mood
Yesterday, the New Zealand Dollar (NZD) initially firmed amid an improving market mood.
Later in the evening, the ‘Kiwi’ suffered a similar fate to the ‘Aussie’ as a souring mood saw NZD shed earlier gains.
Due to a lack of economic data, the ‘Kiwi’ could struggle for clear direction today. Risk appetite may continue to be the main driver of movement.
Pound (GBP) Listless amid Pared Back BoE Bets
The Pound (GBP) remained pressured by pared back Bank of England (BoE) interest rate hike bets yesterday.
Last week’s downbeat economic data releases have dampened expectations ahead of the BoE decision on Thursday. This saw Sterling soften against its stronger rivals.
GBP may trade listlessly again today, as investors look ahead to tomorrow’s consumer price index release.
Euro (EUR) Wavers amid Lack of Data
Owing to a short supply of macroeconomic releases, the Euro (EUR) saw little in the way of clear movement yesterday.
Furthermore, expectations that the European Central Bank (ECB) has reached the peak of its tightening cycle contributed additional headwinds.
This evening, the final Eurozone inflation print for August is due to release. Confirmation of cooling inflation could weaken the common currency.
US Dollar (USD) Stagnates as Data Dries Up
The short supply of data clouding yesterday’s trade also kept the US Dollar (USD) rangebound.
Additionally, USD investors were resistant to place any aggressive bets ahead of the Federal Reserve’s looming interest rate decision.
The ‘Greenback’ may waver again during today’s trade, as investors remained focused on tomorrow’s Fed decision.
Canadian Dollar (CAD) Firms as Oil Prices Rise
Oil prices strengthened on Monday, which served to lift the commodity-linked Canadian Dollar (CAD).
Tonight, the latest Canadian inflation data is due out. If both core and headline inflation increase as forecast, the ‘Loonie’ could rally on renewed Bank of Canada (BoC) rate hike bets.
Data Releases
Sep 19th 11:30 AUD RBA Meeting Minutes
Sep 19th 19:00 EUR Inflation Rate Final (Aug) 5.3%
Sep 19th 22:30 CAD Inflation Rate (Aug) 3.8%