US dollar buoyed by risk-off flows

Australian dollar (AUD) sinks amid cautious trade

The risk-sensitive Australian dollar (AUD) trended broadly lower on Tuesday amid a deteriorating market mood.

An uptick in US Treasury yields saw investors favouring the safer US dollar (USD) in place of its more risk-sensitive rivals, thereby sinking the ‘Aussie’.

Looking ahead, Australia’s latest GDP data is due for release this morning. Could accelerating domestic growth see AUD rebound throughout today’s session?

New Zealand dollar (NZD) tumbles under gloomy market sentiment

Much like its Australian counterpart, the acutely risk-sensitive New Zealand dollar (NZD) fell sharply on Tuesday amid a souring market mood.

Coming up, a data-light session could leave the ‘kiwi’ vulnerable to global risk dynamics today.

Pound (GBP) wobbles amid absence of data

The pound (GBP) was largely subdued on Tuesday amid a lack of fresh UK data.

This left the increasingly risk-sensitive currency vulnerable against some of its rivals amid the cautious market mood.

This evening, the UK’s finalised services PMI is due for release. Could confirmation of accelerating services sector activity boost Sterling sentiment?

Euro (EUR) undermined by cooling inflation

The safe-haven euro (EUR) surged against some of its riskier peers yesterday as anxious trade permeated global markets.

However, rising expectations that the European Central Bank (ECB) could lower interest rates this month limited EUR’s upside potential.

This evening, the Eurozone’s finalised services PMI is due out. Should the release confirm strong private sector activity in the bloc, EUR could rise.

US dollar (USD) firms in cautious trade

The US dollar strengthened through yesterday’s session as the downbeat market mood bolstered safe-haven demand.

However, these gains were capped as the latest ISM manufacturing PMI showed the US factory sector continued to contract last month.

Today, the latest US employment data is in focus. Further signs of a cooling US labour market could weigh on the ‘greenback’.

Canadian dollar (CAD) mixed ahead of BoC rate decision

The crude-linked Canadian dollar (CAD) traded in a wide range against its rivals yesterday amid a sharp decline in oil prices.

Tonight, the Bank of Canada (BoC) is due to deliver its latest interest rate decision. Should the bank enact a widely expected rate reduction, CAD could tumble against its peers.

Data releases

4^th Sep 11:30 AUD GDP Growth Rate (Q2)   0.3%

4^th Sep 18:00 EUR Services PMI (Aug)    53.3

4^th Sep 18:30 GBP Services PMI (Aug)   53.3

4^th Sep 18:00 EUR Services PMI (Aug)   53.3

4^th Sep 23:45 CAD BoC Interest Rate Decision   4.25%

5^th Sep 00:00 USD JOLTs Job Openings (Jul)   8.1m