Australian Dollar (AUD) inches higher amid mixed data
The Australian Dollar (AUD) crawled up from its recent lows yesterday, although its gains were limited, amid an improving market mood and mixed economic data.
Although December saw an unexpected drop in Australian employment, consumer inflation expectations in January printed higher than forecast.
Australian economic data is in short supply today. As a result, AUD could be vulnerable to losses if the market mood sours.
New Zealand Dollar (NZD) struggles despite improving mood
The New Zealand Dollar (NZD) also attempted a recovery yesterday, although it had less success than the ‘Aussie’.
While a cautiously upbeat mood lifted NZD during the day’s trade, a lack of data left the ‘Kiwi’ vulnerable to losses in the evening.
This morning’s New Zealand manufacturing PMI could continue to influence NZD as the session unfolds. Risk dynamics could also potentially impact the ‘Kiwi’.
Pound (GBP) uncertain amid lack of data
The Pound (GBP) failed to find a clear direction yesterday as a lack of UK data left the currency rudderless.
Wednesday’s strong inflation data may have continued to lend Sterling some support, cushioning its losses against stronger rivals.
Looking forward, the focus for GBP investors is the UK’s latest retail sales report. An expected drop in sales growth last month could lead the Pound to weaken.
Euro (EUR) falls amid Eurozone economy concerns
The Euro (EUR) stumbled yesterday after the European Central Bank’s (ECB) latest meeting minutes showed concern among policymakers about the Eurozone’s growth outlook.
An uptick in the US Dollar (USD) also weighed on the common currency, due to EUR’s strong negative correlation with USD.
A decline in German PPI this evening could weigh on the Euro. However, a speech from ECB President Christine Lagarde later on might help to offset the downside, if she pushes back on rate cut bets.
US Dollar (USD) recovers as jobless claims drop
The safe-haven US Dollar initially softened yesterday as an improvement in market sentiment dampened USD’s appeal.
However, the ‘Greenback’ rallied during the American trading hours after a surprise drop in US jobless claims last week.
Overnight, the latest US consumer sentiment index is expected to tick higher, which could boost USD. Until then, risk appetite is likely to drive the safe-haven currency.
Canadian Dollar (CAD) wavers higher alongside oil
The crude-linked Canadian Dollar (CAD) found limited success yesterday as oil prices fluctuated higher.
Tonight, an expected halt in Canadian retail sales growth in November could put some pressure on CAD.
Data Releases
Jan 19th 17:00 EUR German PPI (Dec) -0.5%
Jan 19th 17:00 GBP Retail Sales (Dec) -0.5%
Jan 19th 20:00 EUR ECB President Lagarde Speech
Jan 19th 23:30 CAD Retail Sales (Nov) 0%
Jan 20th 01:00 USD Michigan Consumer Sentiment (Jan) 70