Australian dollar (AUD) shrugs off mixed confidence data
On Tuesday, the Australian dollar (AUD) managed to shrug off mixed economic data to strengthen amid cheery trading conditions.
While Westpac found that consumer confidence deteriorated further in April, NAB’s business sentiment reading found a clear improvement.
Turning to today’s session, Australian data is set to thin out. This could leave the ‘Aussie’ to be driven by market risk appetite, with the US inflation reading tonight potentially hurting AUD exchange rates.
New Zealand dollar (NZD) pushed higher by bullish trade impulse
The risk-sensitive New Zealand dollar (NZD) gained ground against most major peers yesterday, as bullish trade swept markets.
However, the ‘Kiwi’ may have seen its gains capped by a significant drop in business confidence. NZIER found that sentiment cratered in the first quarter of 2024, printing at -25%, amid weakening economic activity.
With the Reserve Bank of New Zealand (RBNZ) announcing its latest interest rate decision at noon, NZD may see volatile trade over today’s session.
Pound (GBP) supported by increasing risk appetite
The pound (GBP) ticked higher against its safer peers yesterday, as the market mood began to improve.
Additionally, UK retail sales were found to have improved more than expected in March by the British Retail Consortium (BRC). Owing to an early Easter, consumer spending increased and brightened the outlook for the UK’s vital retail sector.
Data releases are set to taper off during today’s session, which could prompt Sterling to trim its gains.
Euro (EUR) struggles as markets turn to upcoming ECB decision
Yesterday, attention began to shift towards the European Central Bank’s (ECB) interest rate decision, stifling the euro (EUR).
With little in the way of domestic data, investors considered the ECB’s path forward. While a rate cut on Thursday seems unlikely, the growing consensus for a cut in June weighed on the common currency.
ECB speculation may continue to soften EUR exchange rates today, in lieu of other data releases.
US dollar (USD) slips amid upbeat market mood
Cheery trade once again sapped sentiment towards the safe-haven US dollar (USD) during yesterday’s session.
Furthermore, a lack of domestic data releases put additional pressure on the ‘greenback’ as investors sidelined it.
US inflation data for March is expected to print at 3.4% tonight, marking an acceleration from the previous month’s reading. This may diminish existing Federal Reserve rate cut bets, and could strengthen USD against its peers.
Canadian dollar (CAD) weakens as oil prices retreat
The crude-linked Canadian dollar (CAD) struggled during yesterday’s trade, as oil prices began to retreat from recent highs.
The Bank of Canada (BoC) is due to announce its latest interest rate decision tonight. While rates are expected to remain unchanged, a dovish shift in the bank’s forward guidance may sink the ‘loonie’.
Data releases
April 10th 12:00 NZD RBNZ Interest Rate Decision 5.5%
April 10th 22:30 USD Inflation Rate (Mar) 3.4%
April 10th 23:45 CAD BoC Interest Rate Decision 5%