Australian Dollar (AUD) Recovers despite Soft Retail Data
A cheery market mood strengthened the risk-sensitive Australian Dollar (AUD) against many of its peers yesterday.
However, Australian retail sales in August printed below forecasts, keeping a lid on the ‘Aussie’.
Today, AUD may struggle for direction due to a short supply of data releases.
New Zealand Dollar (NZD) Supported by Revitalised Business Confidence
Renewed business optimism lifted the New Zealand Dollar (NZD) during Thursday’s trade.
Following a drop in August, September’s data showed improvements in the outlook for New Zealand’s private sector. Additionally, the upbeat market mood brought further tailwinds.
The ‘Kiwi’ may see renewed volatility today, as markets digest the latest consumer confidence data.
Pound (GBP) Buoyed by Bullish Market Impulse
At the beginning of yesterday’s session, the Pound (GBP) floundered due to a continued absence of data catalysts.
However, the improving levels of risk appetite brought support to Sterling, due its increasingly risk-sensitive nature.
This afternoon, the final UK GDP data reading is set to print. If it maintains a 0.2% expansion for Q2 as expected, GBP could see modest support.
Euro (EUR) Rises despite Middling Data
The Eurozone’s economic sentiment indicator failed to inspire the Euro (EUR) yesterday, as it dipped modestly.
However, potential losses were offset by broad weakness in the US Dollar (USD). Owing to EUR’s negative correlation with USD, the common currency was boosted during Thursday’s trade.
Later today, a slate of impactful data is due to release. The focus is undoubtedly on September’s Eurozone consumer price index. Inflation is expected to cool sharply, which could weaken EUR rates.
US Dollar (USD) Under Pressure as Investors Cash In
The US Dollar encountered selling pressure yesterday as investors moved to cash in on its recent strength ahead of tonight’s inflation data.
Increasing levels of risk appetite over the session brought additional headwinds against the safe-haven ‘Greenback’.
The Federal Reserve’s preferred inflation gauge is due to print tonight. Economists expect to see a sharp cooldown, which may dent the US Dollar.
Canadian Dollar (CAD) Slides as Oil Prices Drop
As oil prices slumped, the crude-linked Canadian Dollar (CAD) weakened against its peers during yesterday’s session.
Tonight, the latest slate of Canadian GDP data is scheduled to release. Could a 0.1% expansion in July buoy the ‘Loonie’?
Data Releases
Sep 29th 16:00 EUR DE Retail Sales (Aug) 0.5%
Sep 29th 16:00 GBP GDP Growth Rate Final (Q2) 0.2%
Sep 29th 17:40 EUR ECB President Lagarde Speech
Sep 29th 19:00 EUR Inflation Rate (Sep) 4.5%
Sep 29th 22:30 CAD GDP (Jul) 0.1%
Sep 29th 22:30 USD Core PCE Price Index (Aug) 3.9%