Australian Dollar (AUD) Retreats amid Souring Sentiment
The Australian Dollar (AUD) struggled for sustained demand on Friday as the week’s risk-on rally came to an end.
Federal Reserve Chair Jerome Powell opened the door to further tightening at his hotly anticipated Jackson Hole speech. The souring mood saw AUD trim its weekly gains.
Turning to today, however, the latest retail sales could boost the ‘Aussie’ if an expected return to growth in the retail sector proves true.
New Zealand Dollar (NZD) Slips on Downbeat Market Mood
Meanwhile, the risk-sensitive New Zealand Dollar (NZD) also failed to shrug off the gloomy market sentiment.
The mood clouded over amid mounting fears of a global slowdown as China’s economy continues to stutter, compounded by the Fed’s aggressive hiking cycle pushing borrowing costs ever higher.
Looking ahead, without any major data, NZD investors will be focused on market sentiment for further impetus today.
Pound (GBP) Edges Higher after Week-Long Losing Streak
The Pound (GBP) found modest success at the end of last week’s session, without a clear catalyst for the movement.
After a week of selling pressure, the Pound seemed to attract some investors looking to pick up a bargain.
Without any further data to go by today, Sterling will be left vulnerable to market sentiment and the continued economic pressures weighing on the UK.
US Dollar (USD) Fluctuates Higher following Fed Speech
The US Dollar (USD) zigzagged higher on Friday as Fed Chair Jerome Powell dropped some hawkish hints in his Jackson Hole speech.
While Powell struck a fairly balanced tone, he also signalled the Fed’s unwavering commitment to bringing down inflation. Markets read the comments as evidence of more US interest rate hikes to come, which in turn boosted the US Dollar.
Turning to today, risk appetite may dominate movement amid a lack of data. If the mood is downbeat, safe-haven flows could boost the ‘Greenback’.
Euro (EUR) Pressured by Economic Pessimism
The Euro (EUR) struggled to shake off its economic woes on Friday as German business confidence soured more than expected.
Germany’s Ifo business climate indicator declined for the fourth consecutive month as business morale continued to deteriorate in Europe’s largest economy.
Eurozone economic data is in short supply today. As a result, we may see the single currency trade without a clear direction.
Canadian Dollar (CAD) Subdued despite Recovering Oil Prices
The Canadian Dollar (CAD) stumbled over the finishing line on Friday, as a slight recovery in oil prices was unable to help the crude-linked ‘Loonie’ gain ground.
Oil price dynamics could drive the Canadian Dollar through much of this week’s trade, while CAD investors wait for the country’s second-quarter GDP results on Friday.
Data Releases
Aug 28th 11:30 AUD Retail Sales (Jul) 0.3%