Australian dollar (AUD) trends higher following hawkish RBA rhetoric
The Australian dollar (AUD) strengthened yesterday morning as Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser raised concerns over stubborn inflation.
The acutely risk-sensitive ‘Aussie’ later extended its gains amid an improving market sentiment and upbeat commodity market.
This morning, the latest Australian business and consumer confidence indexes are due for release. Could improving optimism see AUD consolidate its recent gains?
New Zealand dollar (NZD) rises amid cheery trade
The risky New Zealand dollar (NZD) rose against the majority of its rivals on Monday morning amid positive trading conditions.
The ‘kiwi’ also enjoyed tailwinds from its Australian counterpart, due to the currency pairing’s positive correlation.
An absence of New Zealand data today could leave investors reluctant to place any aggressive bets on NZD, ahead of the Reserve Bank of New Zealand’s (RBNZ) interest rate decision tomorrow.
Pound (GBP) rangebound despite hawkish BoE remarks
The pound (GBP) was mostly rangebound on Monday despite warnings of underlying inflationary pressures in the UK.
With markets now pricing in two additional rate cuts for the remainder of the year, some moderately hawkish comments from Bank of England (BoE) policymaker Catherine Mann fell largely by the wayside.
Coming up, the UK’s latest jobs data is due for release this afternoon. Could further signs that the British labour market is cooling sink GBP?
Euro (EUR) trades sideways amid data lull
The euro (EUR) struggled to attract investor support on Monday with fresh Eurozone releases running thin on the ground.
Elsewhere, global risk dynamics continued to limit EUR’s movements, leaving the safe-haven single currency on the back foot amid a period of bullish trade.
Looking forward, Germany’s latest economic sentiment index is the focus for EUR investors today. Could waning morale in the Eurozone’s largest economy drag the euro lower this evening?
US dollar (USD) falls amid cheery trade
The US dollar (USD) weakened during Monday’s session as upbeat trade continued to permeate global markets, sapping the safe-haven currency’s appeal.
Meanwhile, an absence of American economic data left the ‘greenback’ lacking support.
Tonight, the latest American producer price index may dent USD. Signs of easing US factory prices could solidify the case for a September rate cut from the Federal Reserve.
Canadian dollar (CAD) wavers despite oil uptick
The crude-linked Canadian dollar (CAD) failed to capitalise on a fifth consecutive day of rising oil prices amid a lack of fresh data and CAD’s positive correlation with a weaker US dollar.
Turning to today, a data-light Canadian calendar may leave the ‘loonie’ vulnerable to oil price fluctuations.
Data Releases
13th Aug 10:30 AUD Westpac Consumer Confidence Index (Aug) 83
13th Aug 11:30 NAB Business Confidence (Jul) 5
13th Aug 16:00 GBP Unemployment Rate (Jun) 4.5%
13th Aug 16:00 GBP Average Earnings excl. bonuses (Jun) 4.6%
13th Aug 19:00 EUR German ZEW Economic Sentiment Index (Aug) 38
13th Aug 22:30 USD PPI (Jul) 0.1%