Australian dollar (AUD) firms as risk appetite improves
The Australian dollar (AUD) got off to a positive start yesterday, supported by a positive shift in risk appetite.
Market sentiment improved as global energy prices fell on Thursday, amid hopes that Saudi Arabia will be able to accelerate its timeline to restore its east-west pipeline.
AUD economic data remains in short supply today, leaving AUD exchange rates sensitive to market risk dynamics.
New Zealand dollar (NZD) buoyed by GDP figures
The New Zealand dollar (NZD) trended broadly higher on Thursday as domestic GDP figures reported a stronger-than-expected expansion of growth in the second quarter.
Turning to today’s session, New Zealand’s latest trade figures could act as a headwind for the ‘kiwi’ if they show that export growth continued to slow in August.
Pound (GBP) slides as BoE leaves rates unchanged
The pound (GBP) retreated yesterday as the Bank of England (BoE) voted to leave interest rates on hold again following its September policy meeting.
However, the downside in Sterling was tempered as UK borrowing costs fell on the bank’s announcement that it would slow the pace of its bond sale programme.
Sterling looks set to extend these losses today as the UK’s latest retail sales data is forecast to show that consumer spending contracted for a second consecutive month in August.
Euro (EUR) undermined by revised inflation data
The euro (EUR) was subdued on Thursday, as Wednesday’s surge in the US dollar (USD) continued to drag on the single currency.
Further limiting EUR sentiment was the publication of the Eurozone’s latest consumer price index, as inflation was revised slightly lower in August’s finalised figures.
European Central Bank (ECB) President Christine Lagarde is scheduled to speak later today. Could a hawkish tilt to her remarks offer some reprieve for the euro?
US dollar (USD) pressured by profit-taking
The US dollar (USD) ticked lower on Thursday in the aftermath of the Federal Reserve’s latest interest rate decision.
Having soared late on Wednesday after the Fed delivered a particularly hawkish rate hike, the ‘greenback’ was forced to relinquish a portion of its gains as investors booked their profits.
Coming up, the latest US industrial production figures could offer fresh support for the US dollar today, if August’s data reports factory output picked up again last month.
Canadian dollar (CAD) dented by softer oil prices
The Canadian dollar (CAD) was muted yesterday as easing oil supply fears saw Brent crude retreat to $102 a barrel.
Looking ahead, expect movement in the ‘loonie’ to remain closely tied to oil price dynamics through the remainder of the week.
Data Releases
08:45 NZD Balance of Trade (Aug)
16:00 GBP Retail Sales (Aug)
20:30 EUR ECB Lagarde Speech
23:15 USD Industrial Production (Aug)