Australian Dollar (AUD) Struggles amid Souring Market Mood
The Australian Dollar (AUD) was left to trend lower yesterday, as the market mood progressively soured.
The risk-on ‘Aussie’ was left vulnerable to these shifts by an absence of macroeconomic releases.
Coming up today is the publication of Australia’s latest jobs report. If the unemployment rate holds at 3.7%, AUD could strengthen amid signs of a tight labour market.
New Zealand Dollar (NZD) Buoyed by Hotter-Than-Expected Food Inflation
Wednesday saw the New Zealand Dollar (NZD) firm against most of its peers, following hotter-than-expected food inflation.
Printing at 8.9%, the volatile index suggested a need for further tightening from the Reserve Bank of New Zealand (RBNZ). However, these gains were capped by the risk averse impulse.
Data remains in short supply for the ‘Kiwi’, leaving it vulnerable to shifts in risk appetite. Could bullish trade boost NZD?
Pound (GBP) Undermined by Shock GDP Contraction
The publication of the UK’s latest GDP data capped the Pound (GBP) yesterday, as the UK economy contracted more than forecast in July.
The shock 0.5% contraction sparked recession concerns, leaving Sterling directionless during the session.
The UK’s darkening economic outlook may remain the focus amongst investors today, which may limit GBP’s appeal.
Euro (EUR) Listless as Focus Shifts to ECB Decision
The Euro (EUR) was muted yesterday, as investors shifted their attention to today’s interest rate decision from the European Central Bank (ECB).
This saw EUR investors shrug off the latest Eurozone industrial production figures, despite them reporting a larger-than-expected decline in factory output in July.
The ECB are set to deliver their latest interest rate decision tonight. Economists are anticipating a pause, but hawkish assertions could boost EUR.
US Dollar (USD) Muted amid Cooling Core Inflation
Yesterday, following an initial spike, the US Dollar (USD) traded narrowly after core inflation cooled in line with forecasts.
This came despite an increase in headline inflation, as analysts suspected that the rise was due to fuel and rent price fluctuations. As such, investors began to pare back their bets on further interest rate hikes from the Federal Reserve, capping the ‘Greenback’.
The ‘Greenback’ may see volatile trade today, as slowing retail sales could offset a rise in PPI in August.
Canadian Dollar (CAD) Grinds Higher as Oil Prices Tick Upward
Modest oil price increases cushioned the commodity-linked Canadian Dollar (CAD) yesterday.
The ‘Loonie’ may remain reliant on oil prices today, as the data drought continues. Will another uptick in prices help to underpin CAD demand?
Data Releases
Sep 14th 11:30 AUD Unemployment Rate (Aug) 3.7%
Sep 14th 22:15 EUR ECB Interest Rate Decision 4.25%
Sep 14th 22:30 USD Retail Sales (Aug) 0.2%
Sep 14th 22:30 USD PPI (Aug) 0.4%
Sep 14th 22:45 EUR ECB Press Conference