Australian dollar (AUD) slides amid risk aversion
The Australian dollar (AUD) fell yesterday as a souring market mood weighed on the risk-sensitive currency.
Escalating tensions in the Middle East and concerns about a coming Federal Reserve interest rate hike prompted a cautious tone among investors.
Risk appetite could determine AUD’s direction today, as Australian economic data remains thin on the ground. A prevailing risk-off mood could see the ‘Aussie’ fall further.
New Zealand dollar (NZD) dented by cautious trade
The New Zealand dollar (NZD) also weakened yesterday due to the gloomy market mood.
Looking ahead at the remainder of today’s session, market risk appetite could determine NZD’s direction. Another day of anxious trade could weigh on NZD.
Pound (GBP) unsure as investors eye data
The pound (GBP) lacked a clear directional bias yesterday as British economic data was in short supply.
GBP investors were also reluctant to place any big bets on Sterling amid a flurry of high-impact releases due later in the week.
Today brings the first of these releases – the UK’s latest jobs report. The pound is poised to fall if British unemployment rose in the three months to July.
Euro (EUR) undermined by USD strength
The euro (EUR) faced pressure yesterday as the common currency suffered from its strong negative correlation with the US dollar (USD), as the latter currency strengthened.
Meanwhile, a lack of Eurozone economic data saw EUR struggling to attract support.
Germany’s latest ZEW economic sentiment index is the focus for EUR investors today. Could a fifth consecutive improvement see the euro strengthen?
US dollar (USD) climbs amid Fed rate hike bets
The US dollar (USD) marched higher on Monday as investors bet on the currency ahead of an expected interest rate hike from the Federal Reserve later in the week.
The safe-haven ‘greenback’ also attracted support from a risk-averse market mood, as events in the Middle East soured sentiment.
Looking ahead, the US dollar may remain supported today, if a risk-off market mood prevails.
Canadian dollar (CAD) stifled by inflation figures
The crude-linked Canadian dollar (CAD) initially rose yesterday following a jump in oil prices. However, softer inflation figures undermined the ‘loonie’ in the evening.
Turning to today, CAD could catch bids if crude prices remain elevated.
Data releases
16:00 GBP Unemployment Rate (Jul)
19:00 EUR German ZEW Economic Sentiment Index (Sep)