Australian Dollar (AUD) Falls as Retail Sales Decline for Third Month
The Australian Dollar (AUD) weakened on Tuesday as despite printing above expectations, domestic retail sales contracted for the third consecutive month in August.
Yesterday’s report revealed that sales in New South Wales fell 3.5% in August to the state’s lowest level since April 2020, when the pandemic first hit. Meanwhile, a snap lockdown on the twelfth significantly restricted non-essential retail in the Australian Capital Territory, sending sales tumbling 19.9%.
Looking ahead, any upside potential in the Australian Dollar looks limited today, so long as a risk-off mood continues to prevail.
Pound (GBP) Plummets as UK Fuel Crisis Worsens
The Pound (GBP) traded down against the majority of its peers yesterday as ongoing UK fuel shotage concerns weighed upon Sterling sentiment.
GBP investors were particualrly spooked by suggestions that the shortage will start to have an adverse impact on the UK economy if it continues for much longer.
Today’s consumer credit release from the Bank of England (BoE) may propel the Pound up against the majority of its peers, if borrowing rises to £0.3bn as expected.
Euro (EUR) Trades Up Despite USD Strength
The Euro (EUR) found support on Tuesday in spite of strong demand for the US Dollar, as the single currency also benefitted from a risk-off mood.
Markets also seem to have recovered from Monday’s brief EUR selloff following the conclusion of Germany’s federal elections.
Today’s consumer confidence and economic sentiment for the Eurozone may boost EUR further, although German inflation data on Thursday is likely to be the main driver of movement.
US Dollar (USD) Finds Support on Fed Optimism, Risk-Off Mood
The US Dollar (USD) rallied yesterday as a bearish market mood saw investors favour the safe-haven currency.
In addition, Federal Reserve Chair Jerome Powell also supported USD sentiment as he spoke about the Fed’s tapering signals in his testimony to Congress.
Looking ahead, the US Dollar may maintain its upward trajectory through today’s session, assuming that market mood continues to sour.
Canadian Dollar (CAD) Rises as Oil Prices Extend Gains
The Canadian Dollar (CAD) strengthened on Tuesday as another uptick in oil prices made the commodity-linked currency more attractive to investors.
New Zealand Dollar (NZD) Flops on Weaker Trading Sentiment
The New Zealand Dollar (NZD) succumbed to headwinds yesterday as bearish trading drew support away from the risk-on currency.
Data Releases
Sep 29th 18:30 GBP BoE Consumer Credit (Aug) £0.3bn
Sep 29th 19:00 EUR Eurozone Economic Sentiment (Sep) 116.9
Sep 29th 19:00 EUR Eurozone Consumer Confidence Final (Sep) -4
Sep 30th 00:45 USD Fed Chair Powell Speech N/A
Sep 30th 01:45 EUR ECB President Lagarde Speech N/A
Sep 30th 01:45 GBP BoE Gov Bailey Speech N/A