Australian dollar (AUD) recovers as market mood improves
The Australian dollar (AUD) initially weakened yesterday as a souring market mood sapped the risk-sensitive currency’s appeal.
However, AUD managed to regain ground during the European trading hours as the mood improved.
Looking forward, the latest wage price index could impact AUD. If Australian wage growth remained strong in the first quarter, the ‘Aussie’ could strengthen.
New Zealand dollar (NZD) rallies amid increasing risk appetite
The New Zealand dollar (NZD) traded in tandem with its Australian counterpart yesterday, falling at first but recovering in the evening as risk appetite returned.
New Zealand economic data remains thin on the ground today. As a result, market sentiment could continue to drive NZD movement.
Pound (GBP) weakens as UK unemployment rises
The pound (GBP) fluctuated lower yesterday following mixed jobs data. Although wage growth beat forecasts, UK unemployment rose to an eight-month high.
In addition, Bank of England (BoE) Chief Economist Huw Pill said it was ‘not unreasonable’ to expect that the bank would cut interest rates over the summer.
Amid an absence of UK economic data today, BoE rate cut bets could pressure GBP.
Euro (EUR) supported by uptick in German morale
The euro (EUR) edged higher during yesterday’s European session, following the publication of Germany’s latest ZEW economic sentiment index.
Morale in the Eurozone’s largest economy continued to improve this month and at a faster pace than expected, amid hopes for a robust German economic recovery.
Coming up, a forecast uptick in Eurozone industrial production in March could provide a boost for the euro later this evening.
US dollar (USD) slips following mixed PPI data
The US dollar (USD) fell last night, after a downward revision to March’s producer price inflation figures raised hopes for a softer consumer price index this evening.
Some slightly hawkish comments from Federal Reserve Chair Jerome Powell seemed to help limit USD’s losses, as the Fed chief said it may ‘take longer than expected’ to tame inflation.
Coming up, the latest US consumer price index is in the spotlight. Signs of sticky inflation in April could see the US dollar rocket higher.
Canadian dollar (CAD) steady despite softening oil prices
The Canadian dollar (CAD) traded sideways on Tuesday, with the commodity-sensitive currency appearing unfazed by a drop in oil prices.
Turning to today, we could see CAD’s positive correlation with the US dollar propel the ‘loonie’ higher if US inflation impresses.
Data Releases
May 15th 11:30 AUD Wage Price Index (Q1)
May 15th 19:00 EUR GDP Growth Rate (Q1)
May 15th 19:00 EUR Industrial Production (Mar)
May 15th 22:30 USD Inflation Rate (Apr)
May 15th 22:30 USD Retail Sales (Apr)