Australian Dollar (AUD) Firms following Strong Sales
The Australian Dollar (AUD) strengthened yesterday after September’s retail sales growth beat forecasts, printing at 0.9% versus the expected 0.3%.
In addition, a cautiously upbeat market mood lent the risk-sensitive ‘Aussie’ support.
Turning to today, a lack of major market-moving data releases may leave the Australian Dollar to trade on risk appetite.
New Zealand Dollar (NZD) Rises amid Risk-On Trade
The New Zealand Dollar (NZD) also enjoyed support yesterday, with the increased appetite for risk boosting demand for the ‘Kiwi’.
This morning, New Zealand’s latest business outlook index is due out. Could a decline in confidence dent NZD?
Pound (GBP) Subdued amid Lack of Data
The Pound (GBP) was muted on Monday as a lack of data left the UK currency struggling to attract support.
Concerns about the health of the British economy persisted, applying some pressure to the Pound.
GBP data is still in short supply today, so Sterling may remain subdued.
Euro (EUR) Supported as German GDP Beats Expectations
The Euro (EUR) firmed against its weaker peers yesterday after German GDP beat forecasts, printing at -0.1% in the third quarter rather than the anticipated -0.3%.
EUR also enjoyed its strong negative correlation with a weaker US Dollar (USD), although a sharper-than-expected cooldown in German inflation dampened the common currency’s upside.
The German data releases were mostly a precursor to tonight’s Eurozone releases. Could stagnant GDP and disinflation weigh on EUR exchange rates?
US Dollar (USD) Weakens amid Risk-Positive Trade
The US Dollar stumbled out of the gate yesterday as a risk-on mood dented demand for the safe-haven ‘Greenback’.
In addition, expectations that the Federal Reserve will leave interest rates unchanged at its upcoming meeting subdued the American currency.
Risk appetite could continue driving USD today amid a lack of fresh US data releases.
Canadian Dollar (CAD) Slips as Oil Prices Decline
The crude-linked Canadian Dollar (CAD) faced selling pressure yesterday as a downtick in oil prices dented the ‘Loonie’.
Looking ahead, could lacklustre Canadian GDP data tonight see CAD suffer further losses?
Data Calendar
Oct 31st 10:00 NZD ANZ Business Confidence (Oct) 1
Oct 31st 20:00 EUR GDP Growth Rate (Q3) 0%
Oct 31st 20:00 EUR Inflation Rate (Oct) 3.1%
Oct 31st 22:30 CAD GDP (Aug) 0.1%