Australian dollar (AUD) recoups losses as inflation expectations rise
The Australian dollar (AUD) regained ground yesterday, following Wednesday night’s selloff, as a surprise uptick in Australian consumer inflation expectations boosted the ‘Aussie’.
In addition, a slight improvement in the market mood increased the appeal of the risk-sensitive Australian dollar.
The ‘Aussie’ ends the week with a quiet data calendar. As a result, market sentiment could influence AUD exchange rates.
New Zealand dollar (NZD) finds footing amid risk-positive trade
The New Zealand dollar (NZD) also staged a recovery yesterday, with the risky ‘kiwi’ enjoying the more optimistic mood among investors.
Furthermore, NZD garnered support thanks to its positive correlation with AUD.
This morning’s New Zealand manufacturing PMI could continue to affect NZD exchange rates. As the session progresses, risk appetite may be the defining factor for the ‘kiwi’.
Pound (GBP) struggles despite hawkish BoE comments
Hawkish remarks from Bank of England (BoE) policymaker Megan Greene initially lent the pound (GBP) support yesterday, as she argued that rate cuts were still ‘a way off’.
However, this failed to support Sterling through the remainder of the session, with GBP slipping against its stronger peers.
This afternoon, the UK’s latest GDP figure could drive GBP exchange rates. Will weak economic growth see Sterling end the week on a sour note?
Euro (EUR) slips as ECB signals June rate cut
The euro (EUR) fell during yesterday’s European session as the European Central Bank (ECB) signalled an interest rate cut in June following its April policy meeting.
While the bank left rates unchanged, it clearly communicated for the first time that rate cuts are now on the table, which undermined the euro.
Amid a lack of more impactful data, Germany’s final inflation rate for March could impact EUR later today. Confirmation of cooling price pressures could dent the common currency.
US dollar (USD) trims gains amid profit-taking
The US dollar (USD) fell afoul of some profit-taking yesterday, after striking a five-month high in the wake of the US consumer price index on Wednesday night.
The safe-haven currency also trimmed its gains amid a risk-on market mood. However, the ‘greenback’ was still stronger than it was at the start of the week.
Tonight, the latest US consumer sentiment results from the University of Michigan could impact USD. Will a deterioration in morale dent the US dollar?
Canadian dollar (CAD) falls as oil prices decline
The crude-linked Canadian dollar (CAD) softened against many of its rivals yesterday as CAD was dragged down by weakening oil prices.
Turning to today, Canadian economic data is once again thin on the ground. As a result, oil prices could drive movement in the ‘loonie’.
Data
Apr 12th 16:00 EUR German Inflation Rate (Mar) 2.2%
Apr 12th 16:00 GBP GDP (Feb) 0.1%
Apr 12th 16:00 GBP BoE Greene Speech
Apr 12th 18:00 EUR ECB Survey of Professional Forecasters
Apr 13th 00:00 USD Michigan Consumer Sentiment (Apr) 79