Australian dollar (AUD) fluctuates amid mixed trade sentiment
The Australian dollar (AUD) wavered yesterday amid shifting market risk appetite.
While a US dollar (USD) selling bias offered support to the ‘Aussie’, ongoing geopolitical jitters meant these gains proved short-lived.
Australia will publish its latest jobs report later this morning, with consensus estimates expecting unemployment to fall back to 4.2% in July. Will this temper Reserve Bank of Australia (RBA) interest rate cut bets and lift AUD?
New Zealand dollar (NZD) buoyed by resilient consumer card spending
The New Zealand dollar (NZD) firmed on Wednesday, supported by a surprise uptick in domestic credit card spending, suggesting that consumer activity may be more resilient than previously thought.
Looking ahead, with NZD data in short supply, any movement in the ‘kiwi’ today is likely to be tied to market risk dynamics.
Pound (GBP) supported by hawkish BoE repricing
The pound (GBP) trended broadly higher through yesterday’s session as the currency continued to be underpinned by hawkish Bank of England (BoE) interest rate bets.
Sterling’s gains were also aided by the weakness of many of its peers.
The pound’s recent bullish momentum looks set to be tested later today, as the UK’s latest GDP figures are forecast to report that economic growth cooled rapidly in the second quarter.
Euro (EUR) subdued amid Trump-Putin meeting uncertainty
The euro (EUR) was muted on Wednesday amid a sense of caution ahead of US President Donald Trump’s meeting with his Russian counterpart later in the week.
EUR investors are wary that any potential deal agreed between the two powers could undermine European interests and regional security.
The Eurozone will also release its latest GDP figures today, but unless they deviate from the preliminary estimate, their impact on the euro may be negligible.
US dollar (USD) slides on dovish Fed bets
The US dollar (USD) retreated through yesterday’s session amid mounting pressure on the Federal Reserve to cut interest rates.
Following fresh criticism from US President Donald Trump on Tuesday, US Treasury Secretary Scott Bessent added to the political pressure on the US central bank by calling for Fed policymakers to deliver a half-point rate cut next month.
Looking ahead, the latest US producer price inflation figures could offer some respite for the US dollar today, if an acceleration in factory input prices helps to temper Fed rate cut bets.
Canadian dollar (CAD) pressured by soft oil prices
The Canadian dollar (CAD) stumbled on Wednesday, with the appeal of the commodity-linked currency diving as oil prices slumped to a new two-month low.
Expect CAD exchange rates to continue to soften today if oil prices remain in retreat.
Data releases
11:30 AUD Unemployment Rate (Jul)
16:00 GBP GDP (Q2)
19:00 EUR Employment Change (Q2)
19:00 EUR GDP (Q2)
22:30 USD PPI (Jul)