Australian dollar (AUD) undercut by falling consumer confidence
Westpac found that Australian consumer confidence fell to a four-month low in March, which stifled the Australian dollar (AUD) on Tuesday.
Additionally, the market mood soured over the course of the session, sapping sentiment towards the risk-sensitive ‘Aussie’.
This morning, Australia’s latest monthly consumer price index indicator is due for publication. As inflation is forecast to have accelerated in February, this may boost AUD.
New Zealand dollar (NZD) seesaws as market mood fluctuates
Tuesday saw the risk-sensitive New Zealand dollar (NZD) begin the session on strong footing amid an upbeat market mood.
However, as risk appetite softened over the day’s trade, the ‘Kiwi’ trimmed its gains, falling back against most peers.
NZD could further trim its gains today, if business confidence deteriorated in March as economists expect.
Pound (GBP) listless amid dry data spell
On Tuesday, the pound (GBP) traded within a narrow range due to a lack of impactful economic data releases.
Meanwhile, Bank of England (BoE) policymaker Catherine Mann pushed back against market interest rate cut bets, but this failed to boost GBP.
UK data remains hard to come by today, which may prompt another day of quiet trade for Sterling.
Euro (EUR) dampened by continued German pessimism
Yesterday, although Germany’s consumer confidence index for April printed above expectations at -27.4, the euro (EUR) remained flat.
As pessimism remained the overriding mood amongst consumers in the Eurozone’s largest economy, EUR exchange rates were tepid over the session.
Tonight, the latest economic sentiment index for the Eurozone as a whole is due to release. While an increase is forecast in March, it may not be enough to lift the common currency.
US dollar (USD) mixed amid shifting risk appetite
The US dollar (USD) fluctuated over the course of yesterday’s trade, as earlier risk-on trade tapered off and helped the safe-haven ‘greenback’ recoup earlier losses.
Additional support for USD came in the wake of above-forecast durable goods orders data. In February, orders increased by 1.4%, marking a return to growth after January’s slump of 6.9%.
Owing to a lull in US macroeconomic releases today, USD could remain trapped in a narrow range.
Canadian dollar (CAD) buoyed by BoC speech
After ticking lower during yesterday’s session, the Canadian dollar (CAD) was able to regain ground overnight. The upside came as Bank of Canada (BoC) Deputy Governor Carolyn Rogers warned of ongoing inflation risks.
With CAD data releases thin on the ground today, the crude-linked ‘Loonie’ may trade in line with oil price dynamics.
Data releases
Mar 27th 10:00 NZD ANZ Business Confidence (Mar) 34
Mar 27th 10:30 AUD Monthly CPI Indicator (Feb) 3.5%
Mar 27th 20:00 EUR Economic Sentiment (Mar) 96.3