US Dollar fluctuates ahead of Fed meeting minutes

Australian Dollar (AUD) unclear amid tepid risk appetite 

The risk-sensitive Australian Dollar (AUD) wavered yesterday, holding on to recent gains despite a cautious market mood. 

AUD exchange rates seemed supported in the wake of Tuesday’s moderately hawkish meeting minutes from the Reserve Bank of Australia (RBA) and interest rate cut from the People’s Bank of China (PBoC). 

Looking forward, the ‘Aussie’ may continue to be influenced by Australia’s latest PMI results, which were published earlier this morning. 

New Zealand Dollar (NZD) rises amid RBNZ rate hike bets 

The New Zealand Dollar (NZD) strengthened yesterday as markets continued to bet on the possibility of a rate hike from the Reserve Bank of New Zealand (RBNZ). 

The RBNZ convenes to set monetary policy next week, and recent hawkish signals have led some economists to speculate that a rate hike may be on the table. 

Investors may continue to respond to New Zealand’s latest trade data this morning. As the day progresses, risk appetite could drive NZD exchange rates. 

Pound (GBP) flat amid lack of data 

The Pound (GBP) traded sideways yesterday as a lack of UK economic data kept the currency confined to a narrow range. 

GBP investors also seemed uncertain following Tuesday’s mixed comments from Bank of England (BoE) officials, which left traders guessing as to when the bank might start cutting interest rates. 

This evening, the focus is on the UK’s latest PMI results. Could another expansion in the British services sector boost the Pound? 

Euro (EUR) quiet amid thin trading conditions 

The Euro (EUR) was initially subdued on Wednesday amid a lack of Eurozone data and a lukewarm market mood. 

Later on, the Eurozone’s flash consumer confidence report showed that morale improved this month, although it remained deep in negative territory. 

This evening could bring notable EUR movement as the Eurozone’s February PMI results and the European Central Bank’s (ECB) latest meeting minutes are due out. Could weak business activity and dovish hints from the ECB drag the Euro lower? 

US Dollar (USD) wobbles ahead of Fed minutes 

The US Dollar (USD) moved without a clear direction during yesterday’s session as investors awaited the latest meeting minutes from the Federal Reserve. 

In addition, an uncertain market mood and wavering US Treasury yields triggered some modest volatility in USD. 

Later tonight, the latest US initial jobless claims figure is due out. Could an uptick in unemployment claims dent the US Dollar? 

Canadian Dollar (CAD) unclear amid wavering oil prices 

The crude-linked Canadian Dollar (CAD) was subdued yesterday as oil prices wavered in a narrow range. 

Looking ahead, Canada’s retail sales data for December is due out tonight. Could an expected recovery in sales boost the ‘Loonie’?

Data Releases 

Feb 22nd 19:00 EUR Services PMI (Feb) 48.8

Feb 22nd 19:30 GBP Services PMI (Feb) 54.1

Feb 22nd 20:00 EUR Inflation Rate (Jan) 2.8%

Feb 22nd 22:30 EUR ECB Monetary Policy Meeting Accounts

Feb 22nd 23:30 CAD Retail Sales (Dec) 0.8%

Feb 22nd 23:30 USD Initial Jobless Claims (17/Feb) 218,000