Australian Dollar Rises despite Weak Retail Sales

Australian Dollar (AUD) Climbs amid Upbeat Market Mood

The Australian Dollar (AUD) shrugged off weak retail data yesterday, with the risk-sensitive ‘Aussie’ firming amid a cheery market mood.

Although Australian retail sales unexpectedly contracted by 0.2% in October, investors still opted for AUD as a risk-on tone took hold.

Turning to today’s session, Australia’s latest monthly inflation indicator is in focus this morning. Could a cooldown in October’s reading see the Australian Dollar stumble?

New Zealand Dollar (NZD) Subdued Ahead of RBNZ Decision

The New Zealand Dollar (NZD) was muted yesterday, despite the upbeat mood, as investors refrained from placing aggressive bets ahead of the Reserve Bank of New Zealand’s (RBNZ) upcoming interest rate decision.

The ‘Kiwi’ then stumbled during the European trading session as risk appetite waned, leaving NZD lacking support.

This morning, the RBNZ decision is in the spotlight. If the bank leaves rates unchanged and strikes a dovish tone, the ‘Kiwi’ could slide.

Pound (GBP) Mixed amid Lack of Data

The Pound (GBP) traded without a clear direction on Tuesday amid a lack of UK economic data.

A report from the British Retail Consortium (BRC) may have also driven GBP’s mixed movement. The BRC highlighted the potential for persistently high inflation while also warning about the ongoing challenges facing UK businesses.

UK data remains thin on the ground today. As a result, trade in Sterling may remain mixed.

Euro (EUR) Firms as German Data Beats Forecasts

The Euro (EUR) enjoyed modest success yesterday after German consumer confidence improved more than forecast heading into December.

However, household morale in the Eurozone’s largest economy remained extremely pessimistic. This significantly limited the Euro’s upside potential.

Looking forward, Germany’s inflation rate for November is due out this evening. Could an expected cooldown dent European Central Bank (ECB) rate hike bets and see EUR slump?

US Dollar (USD) Slips as Treasury Yields Remain Low

After a muted day of trade yesterday, the US Dollar (USD) then declined during American trading hours.

The ‘Greenback’ seemed to remain under pressure following the recent sharp decline in US Treasury yields.

Tonight, the latest estimate for US GDP is due out. Could confirmation of strong growth in the third quarter boost USD exchange rates?

Canadian Dollar (CAD) Fluctuates amid Oil Price Volatility

The crude-linked Canadian Dollar (CAD) initially firmed yesterday as oil prices rose. However, oil volatility later in the session saw CAD shed its earlier gains.

With Canadian data in short supply today, oil price dynamics may continue to drive CAD exchange rates.

Data release

Nov 29th 10:30  AUD       Monthly CPI Indicator (Oct) 5.2%

Nov 29th 11:00  NZD        RBNZ Interest Rate Decision 5.5%

Nov 29th 20:00  EUR       Economic Sentiment (Nov) 93.7

Nov 29th 23:00  EUR       DE Inflation Rate (Nov) 3.5%