Australian Dollar (AUD) underpinned by improving Chinese retail
Upbeat Chinese retail data supported the Australian Dollar (AUD) at the beginning of yesterday’s session.
However, hesitation ahead of the Reserve Bank of Australia’s (RBA) interest rate decision today undercut AUD. Furthermore, concerns over the impact of Tropical Cyclone Megan brought additional pressure by dampening commodity trade.
Later this morning, the RBA is due to publish its latest interest rate decision. If the RBA remains coy with its forward guidance, the ‘Aussie’ could see fresh volatility.
New Zealand Dollar (NZD) bolstered by improving services activity
Robust service sector data underpinned the New Zealand Dollar (NZD) on Monday.
February’s services PSI printed at 53, reflecting continued sector growth on a monthly basis. This was above market expectations and served to keep the ‘Kiwi’ aloft amid signs of a brightening economic outlook.
Today, NZD could trade in tandem with its Australian counterpart in the wake of the RBA’s rate decision.
Pound (GBP) directionless amid light data calendar
Yesterday saw the Pound (GBP) trade without a clear direction amid a lull in macroeconomic data releases.
Furthermore, investors began to look ahead to the Bank of England’s (BoE) interest rate decision later in the week. With traders reluctant to alter their positions, GBP was rangebound.
Another day of minimal data could keep Sterling subdued today, with investors looking ahead to the UK consumer price index tomorrow and BoE decision on Thursday.
Euro (EUR) muted amid absence of releases
The Euro (EUR) muddled through Monday’s session, with a lack of data preventing the common currency from strengthening.
Additionally, markets appeared to consolidate their bets on interest rate cuts from the European Central Bank (ECB) before summer. Over the weekend, ECB policymaker Pablo Hernandez de Cos suggested a starting point of June, should inflation continue to cool.
Tonight, Germany’s latest economic sentiment index could impact EUR. Will another improvement lift the single currency?
US Dollar (USD) steady as markets eye Fed decision
With the Federal Reserve’s interest rate decision on the horizon, the US Dollar (USD) failed to attract support from investors yesterday.
As markets await the next batch of forward guidance from the Fed, traders seemed hesitant to support USD. Furthermore, cautiously bullish conditions likely undermined the safe-haven currency.
With anticipation for the Fed’s decision likely to continue building today, the ‘Greenback’ may remain sidelined.
Canadian Dollar (CAD) listless despite rising producer price inflation
Despite hotter-than-expected PPI data and rising oil prices, the Canadian Dollar (CAD) was subdued during Monday’s session.
Tonight, Canada’s inflation data for February is due to print. The headline rate is forecast to have accelerated, which may lift the ‘Loonie’ by sparking bets on a delay to the Bank of Canada’s (BoC) rate cutting cycle.
Data Releases
Mar 19th 13:30 AUD RBA Interest Rate Decision 4.35%
Mar 19th 20:00 EUR DE ZEW Economic Sentiment Index (Mar) 20.5
Mar 19th 22:30 CAD Inflation Rate (Feb) 3.1%