Australian dollar (AUD) stumbles amid Middle East tensions
The Australian dollar (AUD) initially held steady yesterday as rising commodities prices supported the resource-linked currency.
However, a pullback in gold prices and worries about escalating tensions in the Middle East eventually saw AUD stumble.
Later today, new economic data from China could impact the Australian dollar. If Chinese GDP cooled in the first quarter of this year, concerns over the health of the world’s second-largest economy could dent AUD.
New Zealand dollar (NZD) falls as service sector activity contracts
The New Zealand dollar (NZD) also weakened yesterday following a surprise contraction in New Zealand service sector activity last month.
In addition, the souring market mood and pullback in commodity prices weighed on NZD.
This morning, New Zealand economic data is thin on the ground. As a result, risk sentiment could continue to drive movement in the ‘kiwi’.
Pound (GBP) mixed amid lack of data
The pound (GBP) was mixed yesterday as a lack of UK economic data left the currency exposed to volatility.
While Sterling was able to strengthen against its weaker rivals, it struggled elsewhere.
The focus for GBP investors today is the UK’s latest labour market report. While an uptick in unemployment could dent the pound, signs of stubborn wage inflation could lend Sterling support.
Euro (EUR) struggles amid ECB rate cut bets
The euro (EUR) faced selling pressure yesterday, despite a recovery in Eurozone industrial production in February.
Comments from several European Central Bank (ECB) officials dented EUR, as the policymakers signalled that the bank would begin cutting interest rates in June.
This evening, Germany’s latest economic sentiment index is due for publication. If optimism in the Eurozone’s largest economy improved again this month, the common currency could climb.
US dollar (USD) boosted by strong retail sales
The US dollar (USD) was initially subdued yesterday as USD investors took a breather after last week’s impressive rally.
However, the ‘greenback’ was able to tick higher during the American trading hours after far stronger-than-forecast US retail sales data.
The only US data out in the session ahead will be this evening’s industrial production figures. Could an uptick in American production keep the ‘greenback’ in demand?
Canadian dollar (CAD) rangebound as oil prices retreat
The crude-linked Canadian dollar (CAD) found its potential stifled yesterday as oil prices declined. However, CAD still managed to hold its own against many of its peers.
Canada’s consumer price index is in the spotlight for CAD investors tonight. Cooling inflation could weigh heavily on the ‘loonie’ by boosting bets on an interest rate cut from the Bank of Canada (BoC).
Data Releases
Apr 16th 16:00 GBP Unemployment Rate (Feb) 4%
Apr 16th 16:00 GBP Average Earnings (Feb) 6.1%
Apr 16th 19:00 EUR German ZEW Economic Sentiment Index (Apr) 35.1%
Apr 16th 22:30 CAD Inflation Rate (Mar) 2.7%
Apr 16th 23:15 USD Industrial Production (Mar) 0.4%