Australian dollar (AUD) boosted by hotter-than-expected inflation
On Wednesday, hotter-than-expected inflation data saw the Australian dollar (AUD) strengthen against most major peers.
In the first quarter of 2024, inflation cooled to 3.6% from 4.1%, exceeding forecasts of a 3.4% reading. This indication of more persistent inflationary pressures prompted bets that the Reserve Bank of Australia (RBA) may keep interest rates unchanged for longer, boosting AUD.
With data releases set to be in short supply for today, the ‘Aussie’ may be left rangebound against its peers.
New Zealand dollar (NZD) supported by robust trade data
Following better-than-expected trade data, the New Zealand dollar (NZD) remained afloat during Wednesday’s trade.
New Zealand’s trade balance unexpectedly returned to surplus in March, as exports rose and imports fell.
Due to a lack of data, the ‘kiwi’ may trade on risk appetite during today’s session. Could a souring mood dent NZD?
Pound (GBP) subdued amid mixed CBI data
The pound (GBP) endured muted trade on Wednesday, after an initially sluggish start due to a light data calendar.
This prompted investors to focus on a duo of releases from the Confederation of British Industry (CBI), which proved mixed. While business confidence increased, UK factory orders continued to fall in April, weighing on Sterling.
This evening, the latest distributive trades data from the CBI is due to print. With retail sales expected to have weakened in April, the pound could fall.
Euro (EUR) wobbles despite signs of German economic stability
Yesterday, the euro (EUR) wavered against most peers, but remained underpinned by strong German business confidence data.
Business morale in the Eurozone’s largest economy improved more than expected in April, hitting an 11-month high. This allowed the euro to remain afloat despite upbeat trade.
Looking ahead, Germany’s latest consumer confidence reading is due this afternoon. If this shows continued improvement, EUR may gain ground.
US dollar (USD) wavers higher amid lack of data
On Wednesday, the US dollar (USD) trended broadly higher, recouping some of the previous day’s losses, amid an uptick in US Treasury yields.
In addition, a stronger-than-forecast expansion in US durable goods orders also boosted the ‘greenback’.
Tonight, the latest US GDP growth rate is due to print. With the US economy expected to have grown by 2.5% in the first quarter of 2024, USD exchange rates could climb higher.
Canadian dollar (CAD) slides as retail sales fall
Following a surprise dip in Canadian retail sales, the Canadian dollar (CAD) slumped during yesterday’s session.
Today, the ‘loonie’ is likely to trade in line with the US dollar due to their close correlation. If USD rises, CAD may join it.