Australian dollar (AUD) wobbles as consumer confidence improves
The Australian dollar (AUD) fluctuated through yesterday’s session. The ‘Aussie’ initially gained ground amid an unexpected improvement in Westpac’s latest consumer confidence index
AUD exchange rates then briefly weakened in cautious trade, before rebounding again overnight, despite the mood remaining broadly risk-off.
Australia’s latest wage price index may apply some pressure to the Australian dollar again today if a slowdown in wage growth tempers Reserve Bank of Australia (RBA) interest rate speculation.
New Zealand dollar (NZD) slides as investors book profits
The New Zealand dollar (NZD) was outperformed by the majority of its peers on Tuesday as the weakening of market risk appetite triggered some profit-taking in the currency.
Looking ahead, the ‘kiwi’ may struggle today if cooling producer prices weaken Reserve Bank of New Zealand (RBNZ) tightening expectations.
Pound (GBP) dented by soft employment data
The pound (GBP) faced headwinds through yesterday’s session, with the release of the UK’s latest jobs report.
Higher-than-expected unemployment and a slowdown in wage growth sapped Sterling sentiment as it weakened the odds of the Bank of England (BoE) still tightening monetary policy later in the year.
The UK’s consumer price index is in the spotlight today, with the pound poised to rebound if BoE rate hike bets are revived by an acceleration of inflation last month.
Euro (EUR) steadies as German economic sentiment improves
The euro (EUR) was stable on Tuesday, following the publication of Germany’s latest ZEW economic sentiment index.
August’s index reported a stronger-than-expected improvement in morale, supported by strong exports from the Eurozone’s largest economy.
EUR investors will look to a speech by European Central Bank (ECB) President Christine Lagarde for fresh impetus today, with a hawkish tilt to her comments potentially triggering more meaningful support for the euro.
US dollar (USD) underpinned by safe-haven demand
The US dollar (USD) edged higher yesterday as the expiration of the 60-day Memorandum of Understanding between the US and Iran soured market sentiment and buoyed the currency’s safe-haven appeal.
However, this support proved modest, as rising US Treasury yields perpetuated concerns about the US debt burden.
Coming up, the release of the minutes from the Federal Reserve’s latest policy meeting will be the highlight for USD investors today as they look for any additional insights into how the central bank may shape policy in the coming months.
Canadian dollar (CAD) buoyed by rising oil prices
The Canadian dollar (CAD) firmed on Tuesday as an uptick in oil prices reflected positively on the commodity-linked currency.
If this uptrend in oil persists, the ‘loonie’ may garner additional support through today’s session.
Data Releases
08:45 NZD PPI (Q2)
11:30 AUD Wage Price Index (Q2)
16:00 GBP Inflation Rate (Jul)
17:10 EUR ECB President Lagarde Speech
04:00 USD FOMC Minutes