Australian dollar (AUD) sinks amid lack of data
The Australian dollar (AUD) initially slumped on Wednesday as the Reserve Bank of New Zealand’s (RBNZ) latest interest rate decision rocked Australian markets.
The risk-sensitive ‘Aussie’ then continued to trend lower amid an uncertain market mood and sinking commodity prices.
Today, Australia’s latest jobs data is due for release. Signs of steady employment may lend AUD support. Additionally, some high-impact Chinese releases could impact AUD movement, due to the Australin dollar’s status as a proxy currency for the Chinese economy.
New Zealand dollar (NZD) plummets following RBNZ rate cut
The New Zealand dollar (NZD) tanked on Wednesday morning after the RBNZ unexpectedly lowered interest rates by 25 basis points.
In addition to delivering its first rate cut in over four years, the bank also delivered dovish forward guidance, sparking a selloff in NZD.
Looking ahead, a lack of fresh data may leave the ‘kiwi’ exposed to further losses today, as markets digest the RBNZ’s shift towards looser monetary policy.
Pound (GBP) falters on UK inflation report
The pound (GBP) fell on Wednesday afternoon following the latest batch of UK inflation data.
Both headline and core inflation missed forecasts in July, stoking expectations that the Bank of England (BoE) could enact another interest rate reduction next month.
Coming up, could decelerating UK GDP growth see GBP extending its losses this afternoon?
Euro (EUR) strengthens amid USD downturn
The euro (EUR) climbed on Wednesday evening, despite an unexpected decline in industrial production in June.
Broad weakness in the US dollar (USD) lent the euro support, due to the currency pairing’s negative trading relationship. As USD held close to a seven-month low, the bloc’s downbeat data fell largely by the wayside as EUR sentiment improved.
Looking forward, a data-light session across the Eurozone today could see the common currency left to trade without a clear direction.
US dollar (USD) stymied by slowing inflation
The US dollar struggled to attract investor support on Wednesday as a cooler-than-forecast batch of American inflation data sapped USD sentiment.
Headline inflation unexpectedly eased to 2.9% in July, reinforcing market speculation that the Federal Reserve will cut rates multiple times this year.
Tonight, the latest American retail sales data is due for release. Increased consumer activity in the US could lift USD. The latest initial jobless claims report is also due for release this evening, with any further signs of slack in the US labour market likely to weigh on the ‘greenback’.
Canadian dollar (CAD) mixed amid data lull
The Canadian dollar (CAD) was mixed yesterday amid a lack of data, although it managed to rise against its weaker peers despite falling oil prices.
Today, an ongoing lull in Canadian data may leave the ‘loonie’ to trade on oil price dynamics.
Data Releases
15th Aug 11:30 AUD Unemployment Rate 4.1%
15th Aug 16:00 GBP GDP Growth Rtae (Q2) 0.6%
15th Aug 22:30 USD Retail Sales (Jul) 0.3%
15th Aug 22:30 USD Initial Jobless Claims (10/Aug) 235,000
15th Aug 23:15 USD Industrial Production (Jul) -0.3%