Australian dollar (AUD) firms on China stimulus hope
The Australian dollar (AUD) ticked broadly higher at the start of this week, supported by comments made by Chinese Premier Li Qiang over the weekend.
Li Qiang suggested that low inflation and low central government debt offers room for further macro policy from Beijing.
Coming up, will a deterioration in domestic consumer confidence this month pull the ‘Aussie’ lower later today?
New Zealand dollar (NZD) fluctuates on RBNZ rate cut speculation
The New Zealand dollar (NZD) traded erratically yesterday. While it benefitted from a cautiously optimistic market mood, the ‘Kiwi’ faced some pressure after a report from the International Monetary Fund (IMF) suggested the Reserve Bank of New Zealand (RBNZ) will start cutting interest rates later in the year.
In the absence of any domestic detail, movement in NZD exchange rates is likely to be driven by market risk appetite today.
Pound (GBP) buoyed as UK retail activity recovers
The pound (GBP) traded with modest gains on Monday, in response to the Confederation of British Industry’s (CBI) latest distributive trades index.
The CBI reported retail sales volumes saw a marginal increase in March, the first positive reading since April 2023.
Looking ahead, with UK data in short supply today, the pound may struggle to find direction today.
Euro (EUR) supported by USD weakness
The Euro (EUR) benefitted from its negative correlation with the US dollar (USD) on Monday.
However, demand for the single currency remained very limited in scope as a result of the prevailing risk-on market mood.
Germany will publish its latest consumer climate index later this evening. Will a modest improvement in morale bolster EUR exchange rates?
US dollar (USD) undermined by profit taking
The US dollar (USD) opened this week on the back foot, with the currency running afoul of some profit taking after it surged in the second half of last week.
However, the pullback in USD exchange rates remained fairly limited, thanks to an uptick in US Treasury yields.
The publication of the latest US durable goods orders data will be the main focus for USD investors today, with the ‘greenback’ potentially rallying later tonight if goods orders rebounded in February as forecast.
Canadian dollar (CAD) dips despite buoyant oil prices
The Canadian dollar (CAD) came under pressure on Monday, as the currency’s positive correlation with the US dollar offset a rise in oil prices
Will a continued uptick in crude prices help the ‘Loonie’ find its ground today?
Data Releases
Mar 26th 09:30 AUD Consumer Confidence (Mar) 84.6
Mar 26th 17:00 EUR German Consumer Confidence (Apr) -27.9
Mar 26th 22:30 USD Durable Goods Orders (Feb) 1.1%