Australian Dollar (AUD) Slips amid Downbeat Trade
The risk-sensitive Australian Dollar (AUD) weakened yesterday amid a souring market mood.
A more upbeat tone in the European session may have limited the currency’s losses. However, AUD investors were hesitant ahead of the Reserve Bank of Australia’s (RBA) meeting minutes due today.
The minutes could weigh on AUD if they reaffirm the RBA’s dovish pivot. Shifts in market mood could also prompt movement in the ‘Aussie’.
New Zealand Dollar (NZD) Declines amid Risk-Off Mood
A retreat in global risk appetite saw the New Zealand Dollar (NZD) fall on Monday.
The resource-linked ‘Kiwi’ also was also pulled lower by a downbeat mood in the commodities market.
Looking ahead, a narrowing in New Zealand’s trade deficit could lend support to the ‘Kiwi’.
Pound (GBP) Firms amid UK Banking Optimism
The Pound (GBP) strengthened yesterday as the Bank of England (BoE) said the UK’s banking system ‘remains safe and sound’.
The comments came amid measures to stabilise the recent turmoil in the financial sector. Optimism in European markets lifted Sterling.
With no significant data releases today, Sterling could continue to be affected by news about the UK’s financial stability.
Euro (EUR) Undermined by Lagarde Comments
The Euro (EUR) rose yesterday as the world’s central banks took action to stabilise the global financial system, restoring calm to the European banking sector.
Comments from European Central Bank (ECB) President Christine Lagarde may have dented the Euro. The ECB chief signalled that the recent turmoil may ‘do some of the work that would otherwise be done by monetary policy,’ thereby dampening rate hike bets.
A forecast downturn in German economic sentiment could pull the single currency lower today.
US Dollar (USD) Falls as Risk Appetite Returns
An improving market mood weighed on the safe-haven US Dollar (USD) yesterday.
Markets also scaled back bets on more aggressive action from the Federal Reserve, adding to the pressure on USD.
The US Dollar will see no data releases today. The currency could be affected by Fed bets and risk sentiment.
Canadian Dollar (CAD) Drops as Oil Prices Slump
Retreating oil prices pushed the commodity-linked Canadian Dollar (CAD) lower on Monday. The ‘Loonie’ also came under pressure from a weaker US Dollar.
Looking to today, forecast cooler CPI figures could dent confidence in CAD. A further drop in oil prices could also prompt losses in the currency.
Data Calendar
Mar 21st 07:45 NZD Balance of Trade (Feb) NZ$-1.45bn
Mar 21st 10:30 AUD RBA Meeting Minutes
Mar 21st 20:00 EUR German ZEW Economic Sentiment Index 17.1
Mar 21st 22:30 CAD Inflation Rate (Feb) 5.4%
Mar 21st 22:30 EUR ECB President Lagarde Speech