Australian Dollar (AUD) undercut by mixed business confidence
Yesterday, mixed data from the National Australia Bank (NAB) weighed on the Australian Dollar (AUD).
While the NAB business confidence index printed at 0, above forecasts, the survey showed that inflation remained a persistent bugbear for businesses. Similarly, confidence remained weak at best, further dampening AUD.
Due to a light data calendar, the ‘Aussie’ may trade without a clear direction during today’s session.
New Zealand Dollar (NZD) stumbles amid declining risk appetite
With little in the way of impactful data, the New Zealand Dollar (NZD) was left exposed to a fluctuating market mood yesterday.
As trading conditions soured over the session, the risk-sensitive ‘Kiwi’ lost ground against safer assets.
Today, the New Zealand Dollar could see volatile trade as investors analyse the latest food inflation data.
Pound (GBP) slides as UK wage data disappoints
On Tuesday, the Pound (GBP) slid following news that both wage growth and employment had continued to soften.
Average earnings excluding bonuses unexpectedly cooled to 6.1% in the three months leading to January, while unemployment ticked upward. This reinforced expectations that the Bank of England (BoE) would soon begin cutting interest rates, weakening GBP.
The UK’s latest GDP data is due to print this evening. Could a 0.2% expansion in the UK economy boost Sterling?
Euro (EUR) pressured by cooling German CPI
Confirmation of cooling German inflation weighed on the Euro (EUR) during Tuesday’s session.
The final reading for February’s headline rate printed at 2.5%, down from 2.9%. This kept alive speculation that the European Central Bank (ECB) could begin to cut rates in April, undermining EUR.
Tonight, the common currency could struggle to attract support if Eurozone industrial production in January fell as forecast.
US Dollar (USD) rallies as inflation unexpectedly accelerates
The US Dollar (USD) began to soar towards the end of Tuesday’s European session, following a hotter-than-expected consumer price index
In February, headline inflation increased to 3.2%, above forecasts of a 3.1% reading. As markets have recently been betting on a June rate cut from the Federal Reserve, the pullback of these bets catapulted USD higher against its peers.
Owing to a lull in data releases, the ‘Greenback’ could move in line with market dynamics today. Bearish trade could lift USD above riskier peers.
Canadian Dollar (CAD) uninspired by improving oil prices
The Canadian Dollar (CAD) wavered during Tuesday’s trade, as a lack of domestic data undercut rising oil prices.
Crude prices are likely to be the main driver of movement for the commodity-sensitive ‘Loonie’ today. However, an absence of data releases could see any gains clipped.
Data Releases
Mar 13th 17:00 GBP GDP (Jan) 0.2%
Mar 13th 20:00 EUR Industrial Production (Jan) -1.5%