Australian dollar (AUD) shrugs off China disinflation worries
The Australian dollar (AUD) trended broadly higher at the start of this week, despite China’s latest consumer price index reporting the country slipped back into disinflation last month.
The modest upside in AUD exchange rates was supported by positive risk flows amid the continued weakness in the US dollar.
Coming up, Australia will publish its latest consumer and business confidence figures this morning. Will a deterioration in morale lead the ‘Aussie’ to falter today?
New Zealand dollar (NZD) supported by positive risk flows
The New Zealand dollar (NZD) strengthened on Monday, with the currency benefitting from a cautiously optimistic market mood.
In the absence of any notable NZD economic data, movement in the ‘kiwi’ is likely to remain tied to market risk dynamics today.
Pound (GBP) trades sideways in quiet trade
The pound (GBP) traded without any strong directional bias at the start of this week, with GBP exchange rates primarily influenced by the movement of the currency’s peers.
Sterling was also left adrift amid uncertainty over whether the UK will align more with the US or the EU and its allies in the event of a transatlantic trade war.
UK data remains in short supply today, potentially leaving the pound to continue to be influenced by wider market trends.
Euro (EUR) subdued as German exports slump
The euro (EUR) got off to a slow start this week, following some lacklustre trade data from Germany.
Data released on Monday showed Germany’s trade surplus shrank to a three-month low in January, following a shockingly sharp slump in exports.
Turning to today’s session, while Eurozone data is thin on the ground, any positive news stemming from US-Ukraine talks could help underpin the euro.
US dollar (USD) muted amid US growth jitters
The US dollar (USD) was muted on Monday, with the currency left to nurse its wounds from last week’s collapse, amid mounting fears over US economic growth.
However, as uncertainty surrounding Donald Trump’s trade policies continued to drag on market risk appetite, this helped put a floor under the ‘greenback’.
Looking ahead, the focus for USD investors today will be on the latest US JOLTs job openings data. If January’s data also points to a softening of the US labour market, we may see fresh concerns over the US economy pile pressure on the US dollar today.
Canadian dollar (CAD) retreats amid US-Canada trade concerns
The Canadian dollar (CAD) slipped through yesterday’s session amid fresh concern over US-Canada trade relations, after incoming Canadian Prime Minister Mark Carney pledged to maintain retaliatory tariffs on US goods until Washington shows Canada ‘respect’.
CAD data is in short supply today, likely leaving the ‘loonie’ vulnerable to ongoing trade war uncertainty.
Data releases
09:30 AUD Consumer Confidence (Mar)
10:30 AUD Business Confidence (Feb)
00:00 USD JOLTS Job Openings (Jan)