Australian Dollar (AUD) undermined by anxious trade
Yesterday, gloomy trade weighed down the Australian Dollar (AUD), softening it against some peers, although movement was limited.
With data thin on the ground for most currencies, markets remained quiet ahead of impactful releases later in the week.
The latest NAB business confidence data is due to print this morning. Could a drop in sentiment weigh on AUD?
New Zealand Dollar (NZD) mixed despite gloomy mood
Despite downbeat trade yesterday, the New Zealand Dollar (NZD) managed to remain afloat against its peers due to stronger commodities prices.
However, the downbeat mood and a lack of data kept NZD confined to a narrow range.
Turning to today, a continued dearth of domestic macroeconomic data could see the ‘Kiwi’ remain exposed to market dynamics.
Pound (GBP) stumbles ahead of earnings and employment data
On Monday, the Pound (GBP) struggled to find its footing as investors looked ahead to today’s wage data.
This left the increasingly risk-sensitive Pound susceptible to sombre trade, which saw Sterling slip against its stronger peers.
Looking forward, this evening’s jobs report is in the spotlight for GBP investors. Could strong wage growth and low unemployment see Sterling surge?
Euro (EUR) listless amid absence of data
Monday saw the Euro (EUR) waver against its counterparts amid a light data calendar.
Due to risk-averse trade, the safer common currency managed to grind higher against some riskier assets. However, a lack of further impetus capped EUR’s upside potential.
EUR exchange rates could remain limited over the course of today’s trade, owing to a scarcity of market-moving data releases. Furthermore, confirmation of cooling German inflation could weigh on the Euro.
US Dollar (USD) supported by risk-off trade
Bearish trading conditions underpinned the US Dollar (USD) yesterday, lifting it above its more risk-sensitive peers.
However, ahead of tomorrow’s impactful data, investors appeared hesitant to bet on the ‘Greenback’, which saw its gains limited.
Tonight brings the release of February’s consumer price index. Headline inflation is forecast to have held at 3.1%, which could diminish Federal Reserve interest rate cut bets, thereby lifting USD.
Canadian Dollar (CAD) ticks higher despite falling oil prices
The Canadian Dollar (CAD) firmed on Monday, shrugging off a lull in data releases and a steep decline in oil prices.
The commodity-linked ‘Loonie’ could trade in line with oil price dynamics today. However, a light data calendar could limit any movement.
Data Releases
Mar 12th 10:30 AUD NAB Business Confidence (Feb) -1
Mar 12th 17:00 GBP Unemployment Rate (Jan) 3.8%
Mar 12th 17:00 GBP Average Earnings (Jan) 6.2%
Mar 12th 22:30 USD Inflation Rate (Feb) 3.1%