Australian Dollar (AUD) Climbs as Risk Sentiment Strengthens
The Australian Dollar (AUD) rose against the majority of its peers yesterday as a risk-on mood dominated the market.
Although Australian building permits decreased and the country’s current account surplus expanded by less than expected, private sector credit rose in July against expectations, providing support.
Looking ahead, the ‘Aussie’ could face some headwinds this morning as Australia’s GDP figures are expected to report a slowing of domestic growth in the second quarter.
The Pound (GBP) Falls on Poor Data and Supply Chain Worries
The Pound (GBP) weakened during Tuesday’s trading session as mortgage lending and Bank of England (BoE) consumer credit contracted against expectations.
Sterling sentiment also remains depressed as suppliers warn that due to reduced numbers of HGV drivers, the UK faces food and goods shortages around Christmastime.
Amidst ongoing coronavirus concerns and a poor data outlook, the Pound is likely to struggle to build any momentum this week.
Euro (EUR) Trading Propelled by Positive Data
The Euro (EUR) found support yesterday as German unemployment edged to its lowest level since March and the Eurozone’s consumer price index surpassed forecasts.
The CPI figures proved to be particularly beneficial to the Euro, with inflation soaring to a near-decade high, and potentially putting some pressure on the European Central Bank (ECB) to rethink its cautious strategy going forwards.
However, the single currency could face some hurdles later today as Germany is expected to report retail sales growth slumped sharply in July.
US Dollar (USD) Pressured by Jackson Hole Speech
The US Dollar (USD) spent Tuesday on the defensive, as the ‘Greenback’ continued to face headwinds from Federal Reserve Chair, Jerome Powell’s speech on Friday.
This downturn in USD exchange rates was further reinforced by a pullback in US Treasury yields and a prevailing risk-on mood.
The release of the latest ISM manufacturing later tonight will be the focus for USD investors. Will a slowing of US factory activity pile more pressure on the US Dollar?
Canadian Dollar (CAD) Falls on Sliding Oil Prices
The Canadian Dollar retreated yesterday as a drop in oil prices dampened the appeal of the commodity-linked ‘Loonie’.
New Zealand Dollar (NZD) Firms in Upbeat Trade
The New Zealand Dollar (NZD) trended higher against the majority of its peers on Tuesday, with the risk-sensitive ‘Kiwi’ being buoyed by bullish trade sentiment.
Data Releases
Sep 1st 09:00 AUD Manufacturing PMI Final (Aug) 51.7
Sep 1st 11:30 AUD GDP Growth Rate (Q2) 0.5%
Sep 1st 16:00 EUR German Retail Sales (Jul) -0.9%
Sep 1st 18:00 EUR Manufacturing PMI (Aug) 61.5
Sep 1st 18:30 UK Manufacturing PMI (Aug) 60.1
Sep 1st 19:00 EUR Unemployment Rate (Jul) 7.6%
Sep 1st 22.15 USD ADP Employment Change (Aug) 613K
Sep 1st 23.30 CAD Manufacturing PMI (Aug) 54
Sep 2nd 00:00 USD ISM Manufacturing PMI (Aug) 58.6