Australian dollar (AUD) changeable amid mixed outlook
The Australian dollar (AUD) initially firmed on Tuesday morning following a larger-than-forecast rise in consumer confidence this month
However, an unexpected decline in domestic business confidence offset AUD’s upside potential, leaving the ‘Aussie’ to trade in a wide range against its rivals.
Today, a lack of fresh Australian data could see the risk-sensitive ‘Aussie’ exposed to global risk dynamics. Could an increasing appetite for risk lift the Australian dollar?
New Zealand dollar (NZD) firms ahead of RBNZ rate decision
The risky New Zealand dollar (NZD) leapt higher on Tuesday amid an improving market mood.
The ‘kiwi’ also enjoyed investor support ahead of the Reserve Bank of New Zealand’s (RBNZ) looming interest rate decision, as markets brace for a hawkish outlook.
Looking ahead, could talks of continually restrictive monetary policy in the near term serve to bolster NZD?
Pound (GBP) firms following UK labour data
The pound (GBP) strengthened against some of its rivals on Tuesday following a better-than-forecast batch of UK jobs data.
Lower-than-forecast unemployment coupled with sticky wage growth indicated that the Bank of England (BoE) could have more scope to defer further interest rate cuts through the remainder of the year, thereby lending GBP modest support.
Coming up, the UK’s latest inflation data is due for release this afternoon. Could rising inflation see the pound rally against its peers?
Euro (EUR) undermined by dire German data
The euro (EUR) faced headwinds on Tuesday following the publication of Germany’s latest ZEW economic sentiment indicator.
The index plummeted to 19.2 in August, marking the sharpest decline in over two years and signalling an ongoing deterioration in German economic morale. However, EUR’s negative correlation with the US dollar (USD) cushioned the currency’s downside.
Looking forward, rebounding industrial production in the Eurozone could bolster the common currency this evening. The bloc’s second estimate for GDP could also impact EUR, if it differs from the previous estimate.
US dollar (USD) dips amid easing factory prices
The US dollar weakened during Tuesday’s session as the latest US producer price index came in cooler than forecast.
Meanwhile, a cautiously upbeat market sentiment also undermined the safe-haven currency.
Tonight, the latest American consumer price index is due for release. Could cooling US inflation reinforce Federal Reserve rate cut bets and see USD slide?
Canadian dollar (CAD) slumps as oil prices fall
Declining oil prices pressured the crude-linked Canadian dollar (CAD) on Tuesday amid a lack of fresh domestic releases.
Turning to today, a data-light Canadian calendar may see the ‘loonie’ vulnerable to oil price fluctuations once again.
Data Releases
14th Aug 12:00 NZD RBNZ Interest Rate Decision 5.5%
14th Aug 16:00 GBP Inflation Rate (Jul) 2.3%
14th Aug 19:00 EUR Industrial Production (Jun) 0.5%
14th Aug 19:00 EUR GDP Growth Rate (Q2) 0.3%
14th Aug 22:30 USD Inflation Rate (Jul) 2.9%