Australian Dollar (AUD) Sheds Post-RBA Gains
The Australian Dollar (AUD) recovered from near monthly lows yesterday after the Reserve Bank of Australia’s (RBA) latest meeting minutes suggest a rate hike could be close at hand.
However, AUD’s upside was short-lived. The ‘Aussie’ lost most of its gains during the evening as a gloomy market mood weighed on the risk-sensitive currency.
Looking ahead, a lack of notable Australian data today could leave AUD to trade on risk sentiment.
New Zealand Dollar (NZD) Stumbles as Market Mood Sours
Likewise, the New Zealand Dollar (NZD) ticked higher on Tuesday as the ‘Kiwi’ enjoyed its positive correlation to the rising ‘Aussie’ Dollar.
NZD exchange rates then slipped in the evening as tailwinds wore off and a risk-averse mood swept markets.
In the absence of market-moving New Zealand data today, risk appetite could remain the driving factor for the ‘Kiwi’.
Pound (GBP) Mixed amid a Lack of Data
The Pound (GBP) traded without a clear direction yesterday as a lack of UK data left the currency adrift.
A shifting market mood added to the riskier Pound’s instability. Worries about the Ukraine crisis eventually clouded over markets, seeing GBP slip against some of its safer peers.
There are no UK data releases due out today, so Sterling may trade on domestic UK news. With the country facing a cost-of-living crisis and the return of the ‘partygate’ scandal, there may be headwinds in store for the Pound.
Euro (EUR) Rallies as Macron Leads the Polls
After a lacklustre start to the day, the Euro (EUR) managed to rise in European trade.
The upside may have come as French President Emmanuel Macron consolidated his lead over rival Marine Le Pen heading into the final week of France’s presidential election. As Macron is the current pro-EU president, his re-election would provide political stability.
The single currency could face some pressure today due to the Eurozone’s latest trade figures. Economists expect the bloc’s trade deficit to widen as the costs of energy imports surge, which may weigh on EUR.
US Dollar (USD) Volatile amid Shifting Market Mood
The US Dollar (USD) fluctuated yesterday as a lack of important US data and a changing market mood saw the safe-haven ‘Greenback’ wobble.
However, ongoing expectations of hawkish action from the Federal Reserve underpinned USD, keeping it afloat against most of its rivals.
Fed rate hike bets will likely continue to support the US Dollar through today’s session, preventing serious losses, while risk sentiment could drive some movement.
Canadian Dollar (CAD) Softens as Oil Prices Slip
The Canadian Dollar (CAD) initially rose yesterday as firmer oil prices supported the commodity-linked currency. However, crude slipped as the day went on, dragging CAD down with it.
Canada’s inflation rate is in the spotlight for CAD investors today. Will a high reading boost the ‘Loonie’?
Data Releases
Apr 20th 10:30 AUD Westpac Leading Index MoM (Mar) -0.3%
Apr 20th 16:00 EUR German PPI (Mar) 2.6%
Apr 20th 19:00 EUR Eurozone Industrial Production MoM (Feb) 0.7%
Apr 20th 19:00 EUR Eurozone Balance of Trade (Feb) €-29bn
Apr 20th 22:30 CAD Inflation Rate YoY (Mar) 6.1%