Australian dollar (AUD) muted amid data lull
A souring market sentiment initially saw the risk-sensitive Australian dollar (AUD) edge lower on Tuesday morning as escalating geopolitical tensions saw investors favour the currency’s safer rivals.
A mixed commodity market coupled with a data-light Australian calendar saw the ‘Aussie’ then waver throughout the session.
This morning, Australia’s latest inflation reading is due for release. Could an uptick in inflation in the second quarter see AUD exchange rates rise?
New Zealand dollar (NZD) rebounds amid market correction
The New Zealand dollar (NZD) rallied throughout Tuesday’s session after seemingly entering oversold conditions.
Having struck multi-month lows in recent weeks, the ‘kiwi’ strengthened amid fading Reserve Bank of New Zealand (RBNZ) headwinds.
Turning to today, could a forecast decline in domestic business confidence see NZD relinquish its recent gains?
Pound (GBP) stumbles amid data-light session
The pound (GBP) struggled to attract investor support yesterday amid a lack of fresh UK releases.
In the absence of British data, GBP appeared largely muted as investors braced for the Bank of England’s (BoE) looming interest rate decision, due later this week.
Looking ahead, could BoE rate cut uncertainty continue to stymie the pound, amid an ongoing lull in UK data?
Euro (EUR) wavers despite upbeat GDP
The euro (EUR) was largely subdued on Tuesday evening, despite a better-than-forecast set of GDP data.
Second-quarter GDP in the Eurozone surpassed forecasts, although German growth unexpectedly fell. However, EUR remained trapped in a narrow range as investors appeared reluctant to place any aggressive bets on the common currency ahead of the Eurozone’s upcoming consumer price index.
Looking ahead, the bloc’s latest inflation data is due for release on Wednesday evening. Further signs of disinflation in the Eurozone could dent EUR overnight.
US dollar (USD) edges higher amid strong employment data
The US dollar (USD) firmed last night as the US Bureau of Labor Statistics reported a larger-than-forecast number of new jobs in the latest JOLTs job openings release.
In addition, the latest US consumer confidence index for July also exceeded expectations, although USD’s upside was limited ahead of the Federal Reserve’s upcoming interest rate decision.
This evening, the latest ADP employment change data is due out in the US. Signs of steady hiring across the US private sector could lend the ‘greenback’ modest support later on.
Canadian dollar (CAD) stymied by waning oil prices
The crude-linked Canadian dollar (CAD) struggled to attract support on Tuesday, as mounting tensions in the Middle East saw oil prices retreat.
Tonight, Canada’s latest GDP figures are due for release. A forecast slowing of domestic economic activity could see the ‘loonie’ slump against its rivals.
Data Releases
31st Jul 11:00 NZD ANZ Business Confidence (Jul) 4.5
31st Jul 11:30 AUD Inflation Rate (Q2) 3.8%
31st Jul 11:30 AUD Retail Sales (Jun) 0.2%
31st Jul 19:00 EUR Inflation Rate (Jul) 2.4%
31st Jul 22:15 USD ADP Employment Change (Jul) 150,000
31st Jul 22:30 CAD GDP (May) 0.1%