Australian dollar (AUD) uncertain amid choppy market mood
The Australian dollar (AUD) moved without a clear direction yesterday as a lack of Australian data left the currency rudderless.
In addition, an uncertain market mood and wider market volatility saw AUD waver.
Turning to today, the spotlight falls on Australia’s latest jobs report. An expected rise in unemployment in January could weigh on AUD.
New Zealand dollar (NZD) slumps as RBNZ hits dovish note
The New Zealand dollar (NZD) plummeted yesterday as the Reserve Bank of New Zealand (RBNZ) struck a more dovish tone than anticipated following its decision to leave interest rates unchanged.
New Zealand data is thin on the ground today, potentially leaving NZD to trade on market risk dynamics.
Pound (GBP) see-saws following CPI
The pound (GBP) initially ticked higher during yesterday’s European session, with the currency shrugging off a cooldown in UK inflation amid signs that underlying price pressures remained stubborn.
However, Sterling relinquished its gains as trade went on, with markets continuing to price in a Bank of England (BoE) interest rate cut in March.
Looking forward, the latest industrial trends orders data from the Confederation of British Industry (CBI) could impact GBP today. Another fall in orders in February could weigh on the pound.
Euro (EUR) softens amid Russia-Ukraine peace talks
The euro (EUR) weakened yesterday, with the currency coming under pressure from a lack of notable progress in Russia-Ukraine peace talks.
EUR investors were also anxious about reports that the US has been pressuring Kyiv to cede territory to Moscow, in order to end the war by June.
Later in today’s session, the Eurozone’s preliminary consumer confidence index is expected to improve to its highest level since October 2024, which could boost the euro.
US dollar (USD) climbs as data beats expectations
The US dollar (USD) trended higher yesterday, despite some volatility, as US economic data exceeded forecasts.
Although durable goods orders contracted in December, the downturn wasn’t as deep as feared. Additionally, US industrial production accelerated more than expected in January.
The latest US jobless claims figure could influence USD exchange rates today, with investors sensitive to signs of resilience or weakness in the American labour market.
Canadian dollar (CAD) weakens in spite of rising oil prices
The crude-linked Canadian dollar (CAD) faltered yesterday, despite an uptick in oil prices, as markets reassessed their Bank of Canada (BoC) rate expectations in the wake of Tuesday’s softer CPI data.
Canada’s trade figures for December could impact the ‘loonie’ today, with an ongoing deficit potentially pressuring CAD.
Data releases
10:30 AUD Unemployment Rate (Jan)
21:00 GBP CBI Industrial Trends Orders (Feb)
23:30 CAD Balance of Trade (Dec)
23:30 USD Initial Jobless Claims (14/Feb)
01:00 EUR Consumer Confidence Flash (Feb)