Australian Dollar (AUD) Weakens Edges Lower on Mixed Market Mood
The Australian Dollar (AUD) weakened during Thursday’s session as a souring market mood limited the appeal of the ‘Aussie’.
Domestic coronavirus concerns Australia further limited demand for the Australian Dollar, as the country continues to deal with an ongoing coronavirus situation as daily cases top over 1000 for the first time since the pandemic began.
Preliminary retail sales data from Australia for July could cause concern for the Australian Dollar if sales growth continues to contract as a result of retail closures imposed because of reinforced lockdown measures.
Pound (GBP) Struggles on UK Supply-Chain Issues
The Pound (GBP) found little support during yesterday’s session as the latest survey from the Confederation of British Industry (CBI) revealed concerns about the UK’s economic recovery.
The survey had shown that business optimism fell 17% from the previous survey as supply-chain issues and the effects of the so-called ‘pingdemic’ took their toll.
An absence of notable economic data from the UK will see investors keeping an eye on any further domestic coronavirus developments to drive movement in GBP exchange rates during today’s session.
Euro (EUR) Loses Traction as German Consumer Confidence Falls Lower
The Euro (EUR) softened yesterday as the latest German consumer confidence index fell further than expected at -1.2%.
Whilst the Eurozone has enjoyed a successful vaccination rollout, concerns still remain in the bloc’s largest economy over the prevalence of the delta variant of coronavirus.
German import prices could influence movement in the single currency throughout today.
US Dollar (USD) Firms on Hawkish Fed Comments
The US Dollar (USD) trended higher during yesterday’s trading session, in response to comments from Federal Reserve policymaker James Bullard.
Speaking to CNBC on Thursday, Bullard suggested he is ‘sceptical inflation will moderate in 2022’ and reiterated his call for the Fed to finish tapering its bond purchases by the end of the first quarter of next year.
Looking ahead, USD investors will look to Fed Chair Jerome Powell’s key speech at the Jackson Hole symposium for fresh opportunities to trade this afternoon. Will Powell make any mention of the Fed’s tapering plans?
Canadian Dollar (CAD) Mixed on Absence of Economic Data
The Canadian Dollar (CAD) was mixed for much of Thursday as an absence of economic data from Canada and muted oil prices offered limited support the commodity-correlated ‘Loonie’.
New Zealand Dollar (NZD) Edges Lower on back of More Cautious Market Mood
The New Zealand Dollar (NZD) moved lower across the board in response to a weakening market mood during Thursday’s session.
Data Releases
26th Aug 11:30 AUD Retail Sales (Jul) -2.3%
26th Aug 16:00 EUR Import Prices MoM (Ju) 0.8%
26th Aug 22:30 USD Personal Spending MoM (Jul) 0.3%
26th Aug 00:00 USD Fed Powell Speech