Australian dollar (AUD) retreats as sentiment sours
The Australian dollar (AUD) initially trended higher yesterday as a pullback in the US dollar (USD) supported AUD.
However, risk appetite soured after Donald Trump said tariffs on Canada and Mexico would go ahead following a month-long delay.
Turning to today, Australia’s monthly CPI indicator is in focus. Could an expected uptick in inflation last month boost AUD by dampening Reserve Bank of Australia (RBA) interest rate cut bets?
New Zealand dollar (NZD) weakens amid risk aversion
The New Zealand dollar (NZD) was choppy yesterday, eventually heading lower as a risk-off mood swept markets.
With New Zealand data absent from the calendar today, NZD may trade on market risk dynamics.
Pound (GBP) finds success despite lacklustre data
The pound (GBP) managed to rise against its weaker rivals yesterday, without a clear catalyst for the upside.
While the Confederation of British Industry’s (CBI) latest distributive trades survey beat forecasts, it remained in negative territory and only showed a slight improvement from -25 to -23.
UK data is in short supply today. Therefore, GBP exchange rates may trade without a clear direction.
Euro (EUR) buoyed by USD weakness and ECB comments
The euro (EUR) rose against many of its counterparts yesterday as EUR benefitted from its strong negative correlation with the US dollar.
In addition, hawkish comments from European Central Bank (ECB) policymaker Isabel Schnabel aided the euro, as she seemed cautious about the prospect of further interest rate cuts.
Germany’s latest consumer confidence index could weigh on EUR today, if consumers in the Eurozone’s largest economy remained pessimistic heading into March.
US dollar (USD) drops alongside Treasury yields
After initially wavering amid a shifting market mood, the US dollar eventually came under pressure yesterday.
A decline in US Treasury bond yields dragged on the ‘greenback’.
Tonight, Federal Reserve policymaker Tom Barkin is due to speak. Could a hawkish tone help to revive the US dollar?
Canadian dollar (CAD) slides as oil prices decline
The crude-linked Canadian dollar (CAD) fell yesterday as a drop in oil prices dragged on the currency.
With Canadian data thin on the ground today, oil movements may drive CAD exchange rates once again.
Data releases
10:30 AUD Monthly CPI Indicator (Jan)
17:00 EUR German GfK Consumer Confidence (Mar)
23:30 USD Fed Barkin Speech