Australian Dollar (AUD) Sheds Gains as Sentiment Sours
The Australian Dollar (AUD) initially rose yesterday, despite mixed consumer and business confidence reports, as a risk-on mood swept markets.
However, the ‘Aussie’ then slumped overnight as the tone soured amid signs of sticky US inflation.
Looking ahead, Australian data is in short supply today. As a result, risk appetite could drive most movement in AUD.
New Zealand Dollar (NZD) Rises and Falls amid Shifting Risk Appetite
The New Zealand Dollar (NZD) traded in tandem with the ‘Aussie’ yesterday, rising through the day’s trade and shedding its gains overnight.
The mixed movement came as risk appetite waxed and waned, first boosting the risk-sensitive ‘Kiwi’ and then dragging it back down.
Turning to today, the New Zealand Dollar could once again trade on market risk dynamics.
Pound (GBP) Wavers amid Mixed Jobs Data
The Pound (GBP) faced volatility yesterday after a larger-than-forecast cooldown in UK wage growth impacted Bank of England (BoE) interest rate cut expectations.
However, the British unemployment rate surprised to the upside, holding steady at 4.2%. This cushioned the Pound’s downside.
This evening, the UK’s latest GDP data could influence Sterling. If the reading for October beats forecasts, as it did in September, GBP exchange rates could firm.
Euro (EUR) Climbs as German Data Beats Forecasts
The Euro (EUR) rallied during yesterday’s European session after Germany’s latest economic sentiment index beat forecasts.
December’s index unexpectedly rose to 12.8 – its highest reading since March – boosting optimism around the health of the Eurozone’s largest economy.
The bloc’s latest industrial production figure is the only data release for the Eurozone due out today. Could a decline in production see EUR stumble?
US Dollar (USD) Rebounds following Inflation Data
The safe-haven US Dollar (USD) initially weakened yesterday amid a risk-on market mood.
However, the ‘Greenback’ recovered during the American trading hours after signs of sticky US inflation rattled investors in the run-up to the Federal Reserve interest rate decision.
Tonight, the latest US PPI data could impact USD. However, movement may be limited ahead of the Fed decision early tomorrow morning.
Canadian Dollar (CAD) Falls as Oil Prices Slide
The crude-linked Canadian Dollar (CAD) fell yesterday as oil prices slumped as much as 3% over the course of the day’s trade.
Looking forward, oil price dynamics may continue to be the main factor influencing CAD exchange rates today. Could a continued pullback in prices see the ‘Loonie’ fall further?
Data Releases
Dec 13th 17:00 GBP GDP (Oct) 0%
Dec 13th 20:00 EUR Industrial Production (Oct) – 0.3%
Dec 13th 23:30 USD PPI (Nov) 0.1%