Australian Dollar (AUD) stumbles as market mood softens
Yesterday, the Australian Dollar (AUD) dwindled against its rivals due to a lull in economic data releases.
This left the risk-sensitive ‘Aussie’ vulnerable to a muted market mood, which pushed investors away from riskier assets.
Australian data remains hard to come by today, which could keep AUD exchange rates muted.
New Zealand Dollar (NZD) sunk by dovish RBNZ bets
Investors continued to adjust their bets on further tightening from the Reserve Bank of New Zealand (RBNZ) yesterday, denting the New Zealand Dollar (NZD).
Following previous speculation of another interest rate hike, investors now anticipate the central bank will leave rates unchanged.
The New Zealand Dollar may see quiet trade today, as investors await tomorrow’s interest rate decision from the RBNZ.
Pound (GBP) supported by improving retail sales
The start of this week saw the Pound (GBP) strengthen against most major peers amid news of improving retail sales.
The Confederation of British Industry (CBI) found that sales fell less than forecast in February. This suggested that the UK may be finding its way out of recession, thereby lifting Sterling.
With little in the way of impactful macroeconomic data from the UK today, Sterling could be sidelined over the course of the session.
Euro (EUR) rudderless amid lack of data
Muted trade struck the Euro (EUR) on Monday, as a lack of Eurozone economic data left the common currency struggling to find a clear direction.
Meanwhile, a mixed market mood added to the safer Euro’s uncertain movement.
This evening, the latest GfK consumer confidence data for Germany is due to print. Sentiment is expected to remain deeply negative, which may undermine the common currency.
US Dollar (USD) cushioned by mixed trading conditions
With data releases on the light side for the US Dollar (USD), Monday saw the currency trade without a clear direction.
However, increasing geopolitical tensions and fading demand from China weighed on the market mood, keeping USD underpinned.
Looking forward, an expected slump in US durable goods orders last month could weigh on the ‘Greenback’ tonight.
Canadian Dollar (CAD) wavers amid fluctuating oil prices
The Canadian Dollar (CAD) traded in a mixed capacity on Monday, amid volatile oil prices. With demand from China waning, prices ebbed and flowed over the session.
Oil prices are likely to remain the primary driver of movement for the crude-linked ‘Loonie’ again today amid a lack of other data releases.
Data Releases
Feb 27th 17:00 EUR DE GfK Consumer Confidence (Mar) -29
Feb 27th 11:30 USD Durable Goods Orders (Jan) -4.5%