Australian dollar (AUD) unclear after mixed data releases
The Australian dollar (AUD) wavered yesterday following mixed domestic economic data.
Although Australian business confidence unexpectedly improved in January, February’s consumer confidence index missed forecasts.
Turning to today, a lack of data could leave the ‘Aussie’ exposed to market risk dynamics. Could a risk-off mood see AUD exchange rates weaken?
New Zealand dollar (NZD) wobbles amid tepid mood
The New Zealand dollar (NZD) was also uncertain yesterday amid a lack of data and a mixed market mood.
Risk sentiment could continue to drive NZD exchange rates today. If the mood sours, the ‘kiwi’ could stumble.
Pound (GBP) rebounds as investors buy the dip
The pound (GBP) initially weakened yesterday before regaining ground in the evening.
Some dip-buying seemed to support Sterling after GBP struck multi-day lows against many of its peers.
Overnight, Bank of England (BoE) policymaker Megan Greene is due to speak. Any indication that she might support further interest rate cuts could pressure the pound.
Euro (EUR) firms as USD retreats
The euro (EUR) wavered higher yesterday, with the common currency benefitting from its negative trading relationship with the retreating US dollar (USD).
However, a lack of data and ongoing concerns about the impact of US tariffs on the Eurozone economy limited EUR’s upside.
Eurozone data is thin on the ground today. As a result, movement in the euro may be mixed.
US dollar (USD) retreats as investors cash in
The US dollar initially ticked higher yesterday as markets continued to digest Donald Trump’s tariffs on aluminium and steel.
However, USD retreated in the evening as some investors sought to bank their profits. In addition, noncommittal comments from Federal Reserve Chair Jerome Powell failed to boost USD.
Tonight, the latest US consumer price index is in focus. Stubborn inflation could further dampen Fed rate cut bets, thereby boosting the US dollar.
Canadian dollar (CAD) softens despite rising oil prices
The crude-linked Canadian dollar (CAD) trended broadly lower yesterday, despite rising oil prices, as concerns over US tariffs on Canadian goods continued to weigh on the ‘loonie’.
With Canadian data in short supply today, oil price movements and tariff concerns could drive CAD exchange rates.
Data releases
23:30 USD Inflation Rate (Jan)
01:00 GBP BoE Green Speech
01:00 USD Fed Chair Powell Testimony