Australian dollar (AUD) stymied by cooling CPI
The Australian dollar (AUD) initially stumbled on Wednesday morning as data showed a deceleration in domestic price pressures.
However, with the monthly consumer price index printing slightly above market projections, a modest increase in Reserve Bank of Australia (RBA) interest rate hike bets later lifted AUD.
Looking ahead, could an improving market mood bolster the acutely risk-sensitive ‘Aussie’ today?
New Zealand dollar (NZD) wavers amid lull in data
The New Zealand dollar (NZD) moved without a clear direction on Wednesday amid limited domestic data.
Coming up, ANZ’s latest business confidence index is due for release this morning. Could waning business morale in New Zealand undermine the ‘kiwi’ today?
Pound (GBP) retreats amid UK economic uncertainty
The pound (GBP) trended broadly lower on Wednesday amid an ongoing absence of fresh UK data.
With data in short supply, UK Prime Minister Keir Starmer’s warnings of a ‘painful’ Autumn Budget weighed on GBP. A supposed ‘black hole’ in UK public finances left Sterling on the back foot, as markets speculated over potential British tax rises during the final quarter.
Turning to today, a lack of fresh UK data may see GBP struggle to find a clear direction.
Euro (EUR) pressured by ECB rate cut bets
The euro (EUR) faced headwinds on Wednesday amid rising expectation that the European Central Bank (ECB) could lower interest rates next month.
Elsewhere, the euro fell due to its negative trading relationship with a strengthening US dollar (USD).
This evening, Germany’s latest inflation data is due for release. Signs of easing price pressures in the bloc’s largest economy may fuel ECB interest rate cut bets, and pressure the euro overnight.
US dollar (USD) rebounds amid improving morale
The US dollar rallied on Wednesday as a cautious market mood saw investors favour the safe-haven currency.
The rebound in the ‘greenback’ was also supported by investors seeking to ‘buy the dip’, after USD exchange rates plummeted to multi-month lows last week.
Tonight, the latest American GDP data is due for release. Could accelerating economic growth during the second quarter see USD extend its recent gains?
Canadian dollar (CAD) subdued amid oil price dip
Falling oil prices limited demand for the crude-linked Canadian Dollar (CAD) on Wednesday.
Turning to this evening, could easing Canadian wage growth reinforce expectations of a dovish path forward from the Bank of Canada (BoC), thereby denting CAD?
Data releases
29th Aug 11:00 NZD ANZ Business Outlook (Aug) 20
29th Aug 19:00 EUR Economic Sentiment (Aug) 95.8
29th Aug 19:00 EUR ECB Governor Lane Speech
29th Aug 22:00 EUR German Inflation Rate (Aug) 2.1%
29th Aug 22:30 CAD Average Weekly Earnings (Jun) 3.4%
29th Aug USD GDP Growth Rate (Q2) 2.8%