Australian dollar (AUD) buoyed by positive retail sales
Stronger-than-forecast Australian retail sales data initially boosted the Australian dollar (AUD) on Tuesday morning, as domestic sales grew 0.7% in August.
However, the risk-sensitive ‘Aussie’ trimmed its gains later in the evening due to a souring market mood.
Turning to today, the Ai Group industry index for September is the only data release due out. Could an improvement help lift AUD?
New Zealand dollar (NZD) softens amid risk-off mood
The New Zealand dollar (NZD) weakened yesterday as the anxious market mood dragged on the risk-sensitive ‘Kiwi’.
With New Zealand economic data in short supply today, NZD exchange rates may remain tied to market risk dynamics.
US dollar (USD) rises as risk aversion sweeps markets
The US dollar (USD) climbed yesterday as a risk-off market mood boosted demand for the safe-haven currency following reports that Iran was planning an attack on Israel.
The latest US Job Openings and Labor Turnover survey (JOLTs) also lent USD support, as it revealed an unexpected rise in new vacancies.
Tonight, the latest ADP employment change figure is due out. Could another weak reading ahead of Friday’s more influential payrolls print put USD on the defensive?
Pound (GBP) muted as UK business confidence declines
The pound (GBP) was mixed yesterday, with Sterling struggling against its stronger peers, following the UK’s final manufacturing PMI.
As the results matched the preliminary estimate, movement was limited. However, a slowdown in factory activity and a slump in business confidence put some pressure on GBP.
Sterling could trade without a clear direction once again today amid a lack of UK economic data.
Euro (EUR) slips as Eurozone inflation cools
The euro (EUR) fell yesterday, striking new multi-month lows against some peers, following the Eurozone’s September consumer price index.
The latest CPI figures showed that inflation cooled from 2.2% to 1.8% last month, missing forecasts and dipping below the European Central Bank’s (ECB) 2% target. Bets on a coming interest rate cut saw the single currency weaken.
Later this evening, the Eurozone’s unemployment rate for August is set to hold at a record low of 6.4%. This may lend EUR some support during today’s session.
Canadian dollar (CAD) leaps alongside oil prices
The crude-linked Canadian dollar (CAD) strengthened yesterday following a spike in oil prices. Crude prices surged amid fears of an Iranian missile strike on Israeli forces.
Movements in the oil market may continue driving CAD today amid an absence of Canadian data. If oil prices continue to rise, so could the Canadian dollar.
Data releases
19:00 EUR Unemployment Rate (Aug)
22:15 USD ADP Employment Change (Sep)
23:00 USD Fed Hammack Speech
01:00 USD Fed Bowman Speech
02:15 USD Fed Barkin Speech