Australian Dollar (AUD) Strengthens on Upbeat Market Mood
The Australian Dollar (AUD) moved higher across the board on Tuesday as a pullback in the US Dollar (USD) paired with an upbeat market mood bolstered the appeal of the ‘Aussie’.
Despite the ongoing coronavirus situation across Australia, AUD exchange rates have been able to push higher on the back of optimism following the US Food and Drug Administration’s (FDA) full approval of the Pfizer coronavirus vaccine, which in turn supported the mood around equity markets.
An absence of economic data from Australia will see investors keeping an eye on the global market mood during today’s session.
Pound (GBP) Unable to Make an Impact Despite Positive CBI Distributive Trades Data
The Pound (GBP) was unable to attract any meaningful support yesterday, amidst concerns over a rise in domestic coronavirus cases.
Sterling remained subdued in spite of the latest CBI distributive trades survey jumping 60 points in August, the highest reading in almost 7 years.
The appeal of the Pound could weaken today as an absence of GBP economic data from leaves the spotlight on UK coronavirus developments.
Euro (EUR) Supported by German GDP Figures
The Euro (EUR) found itself supported during Tuesday’s European session as a better-than-expected Q2 GDP reading from the Eurozone’s largest economy strengthened the appeal of the single currency.
German GDP rebounded 1.6% during the second quarter of the year as the economy began to recover from the coronavirus pandemic and subsequent lockdowns.
This afternoon’s German Ifo Business Climate index is expected to soften slightly to 100.4 points, though this is not expected to cause any worry for Euro investors.
US Dollar (USD) Weakens as Market Mood Soars
The US Dollar (USD) weakened across the board yesterday as a strengthening market mood did dampen the appeal of the safe-haven ‘Greenback’.
However, the currency’s losses were tempered somewhat during the US trading session, amidst a modest uptick in US Treasury yields.
If tonight’s US durable goods orders softened as forecast during July, the US Dollar could come under additional pressure.
Canadian Dollar (CAD) Firms as Oil Prices Rebound
The Canadian Dollar (CAD) ticked higher through Tuesday’s session, as the commodity-linked currency was bolstered by a further rebound in oil prices.
New Zealand Dollar (NZD) on Positive Footing as Retail Sales Impress
The New Zealand Dollar (NZD) found support yesterday on the back of some upbeat domestic retail sales figures and an improving market mood.
The ‘Kiwi’ may look to extend these gains later today, if New Zealand reports its trade surplus expanded again last month.
Data Releases
25th 08:45 NZD Balance of Trade (Jul) NZ$300M
25th 18:00 EUR DE Ifo Business Climate (Aug) 100.4
25th 22:30 CAD Wholesale Sales MoM Prel (Jul) -0.2%
25th 22:30 USD Durable Goods Orders MoM (Jul) -0.3%