Australian dollar (AUD) rises as RBA keeps door open for future rate hikes
During yesterday’s session, the Australian dollar (AUD) enjoyed support following a hawkish hold from the Reserve Bank of Australia (RBA).
Although the RBA kept interest rates unchanged, its accompanying statement kept the door open to future rate hikes.
The RBA releases its latest chart pack today. If its assessment of the Australian economy remains downbeat, this could prompt AUD to trim its gains.
New Zealand dollar (NZD) slides amid growing economic pessimism
Tuesday saw the New Zealand dollar (NZD) continue to weaken as the country’s economic outlook remained deeply pessimistic.
New data showed that New Zealand consumer confidence fell by 11 points in the second quarter of 2024, bringing the reading near historic lows.
Turning to today’s session, an absence of domestic data could leave the ‘kiwi’ to trade on market risk appetite.
Pound (GBP) weighed down by cooling grocery prices
Yesterday, cooling UK grocery inflation put the pound (GBP) under pressure against its rivals.
In June, prices eased from a reading of 2.4% down to 2.1%, setting the stage for a cooler consumer price index this afternoon. This prompted renewed bets on a summer interest rate cut from the Bank of England (BoE), undermining Sterling.
May’s CPI later today is expected to show inflation easing to 2% – the BoE’s target rate – which could severely weaken Sterling.
Euro (EUR) flat amid stagnating German economic sentiment
An underwhelming German ZEW economic sentiment index prompted static trade for the euro (EUR) yesterday.
The reading rose to 47.5 in June, far beneath expectations of an increase to 50. The accompanying analysis suggested stagnation in confidence, following a surprise inflation uptick in May.
Today, the euro is likely to be left exposed to shifts in the market mood. If risk appetite remains elevated, EUR may struggle to attract support.
US dollar (USD) muted as retail sales miss forecasts
The US dollar (USD) endured tepid trade during Tuesday’s session, as the latest US retail sales data disappointed investors.
In May, sales increased by 0.1%, below expectations of a 0.2% improvement. Weaker-than-anticipated consumer spending raised concerns that the US economy may be slowing, which undermined the ‘greenback’.
Today, a lack of American economic data could leave USD to trade on risk appetite. An upbeat market mood could sap the safe-haven US dollar’s appeal.
Canadian dollar (CAD) flat amid stable oil trade
Yesterday, steady oil prices kept the crude-sensitive Canadian dollar (CAD) afloat against its peers.
Canadian data remains thin on the ground today, which could lead to muted movement for the ‘loonie’.
Data releases
Jun 19th 11:30 AUD RBA Chart Pack
Jun 19th 16:00 GBP Inflation Rate (May) 2%