Australian dollar (AUD) falls as consumer confidence falters
The Australian dollar (AUD) softened yesterday as Australia’s consumer confidence index unexpectedly declined in January.
In addition to this disappointing data, a souring market mood put pressure on the risk-sensitive ‘Aussie’.
Turning to today, Australian economic data is thin on the ground. Therefore market risk appetite could drive AUD, with the currency likely facing pressure if the tone remains downbeat.
New Zealand dollar (NZD) briefly buoyed by upbeat data
The New Zealand dollar (NZD) initially strengthened yesterday following a surprise surge in domestic business confidence in the fourth quarter of 2025.
However, the ‘kiwi’ surrendered these gains in the evening as a shift to risk-off trade sapped the currency’s appeal.
NZD exchange rates may trade on global risk dynamics again today. Could a prevailing risk-off mood create further headwinds for the New Zealand dollar?
Pound (GBP) uncertain in absence of data
The pound (GBP) moved without a clear direction yesterday amid an ongoing lack of UK economic data.
This saw GBP exchange rates trade in a wide range, with Sterling fluctuating against some of its peers.
Looking ahead, a speech from Bank of England (BoE) Deputy Governor Dave Ramsden could impact GBP today. If Ramsden signals a openness to further interest rate cuts, Sterling could stumble.
Euro (EUR) wavers amid Greenland uncertainty
The euro (EUR) initially faced some pressure yesterday as EUR investors remained concerned about a possible US military intervention in Greenland.
However, the single currency was able to recoup its losses as the session unfolded, with investors hoping that a trilateral meeting between Greenlandic, Danish and US officials could yield a diplomatic resolution.
This meeting is due to take place today, with EUR investors likely focusing on the outcome. Any remarks emerging from the talks could infuse the euro with volatility.
US dollar (USD) edges up as inflation holds steady
The US dollar (USD) inched higher against its weaker rivals yesterday as a souring mood provided the safe-haven currency with initial support.
The latest US consumer price index saw USD waver in the evening, although it didn’t derail the dollar, with both headline and core inflation holding above the Federal Reserve’s target in December.
Today, USD investors may focus on the latest US retail sales figures. A forecast rebound in sales growth in November could support the ‘greenback’.
Canadian dollar (CAD) wobbles despite rising oil prices
The Canadian dollar (CAD) was mixed yesterday, with rising oil prices failing to lift the crude-linked ‘loonie’.
Oil prices could drive CAD exchange rates today. If crude continues to trend higher, the Canadian dollar may gain some traction.
Data releases
23:30 USD PPI (Nov)
23:30 USD Retail Sales (Nov)
01:30 GBP BoE Ramsden Speech