Australian dollar (AUD) hits multi-week highs amid risk-on mood
The Australian dollar (AUD) struck multi-week highs yesterday as a risk-on mood swept markets.
Investors were cheered by a recent rally in the stock markets, following strong profit reports from tech and commodities giants last week. Hopes for a ceasefire in the Middle East also lifted the market mood.
Turning to today, Australia’s latest retail sales figure could impact the ‘Aussie’. Will another month of sales growth boost the Australian dollar?
New Zealand dollar (NZD) rallies as risk appetite improves
The New Zealand dollar (NZD) also rose to multi-week highs against some peers yesterday thanks to the upbeat market mood.
This morning, New Zealand’s latest business confidence report could support NZD. Economists expect morale to have improved in April.
Pound (GBP) unclear in absence of data
The pound (GBP) moved without a clear direction on Monday as a lack of British economic data left Sterling rudderless.
In the absence of data, the increasingly risk-sensitive UK currency was influenced by the market mood, with the pound holding strong against its safer rivals.
Market-moving UK data is absent from the calendar again today. As a result, Sterling could trade in a wide range.
Euro (EUR) softens as economic sentiment declines
The euro (EUR) struggled to attract support yesterday after economic sentiment in the Eurozone unexpectedly declined in April.
Mixed German inflation figures infused EUR with some volatility. While the harmonised inflation rate beat forecasts, headline inflation came in lower than expected.
Coming up, the Eurozone’s latest GDP growth rate and consumer price index are both due out this evening. Could a return to growth and stubborn inflationary pressures see the euro leap higher?
US dollar (USD) weakens amid risk-positive trade
The US dollar (USD) stumbled out of the gate this week as the risk-on market mood sapped demand for the safe-haven currency.
Amid growing hopes for the world economy and optimism over ceasefire negotiations in the Middle East, investors opted for riskier assets.
Looking at the session ahead, a lack of US economic data could leave the ‘greenback’ to trade on risk appetite. If markets remain upbeat, USD exchange rates could soften.
Canadian dollar (CAD) subdued amid quiet trading conditions
The crude-linked Canadian dollar (CAD) wavered mostly sideways on Monday, although it weakened against its stronger peers, amid a lack of Canadian economic data and flat oil prices.
Tonight, Canada’s latest GDP data is due out. Could a notable slowdown in Canadian economic growth in March see the ‘loonie’ stumble?