Australian dollar (AUD) shored up by RBA remarks
The Australian dollar (AUD) stumbled against its stronger peers yesterday as Australia’s latest consumer and business confidence indexes showed deteriorating morale.
However, AUD attracted some support in the evening after Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser said the bank stands ready to raise interest rates again if needed.
With Australian data in short supply today, risk appetite could determine AUD’s direction. Could risk aversion undermine the ‘Aussie’?
New Zealand dollar (NZD) dented by gloomy mood
The New Zealand dollar (NZD) fell yesterday as a souring market mood weighed on the risk-sensitive ‘kiwi’.
Turning to today, a speech from Reserve Bank of New Zealand (RBNZ) Assistant Governor Karen Silk could impact NZD. A cautious tone from Silk could dent the New Zealand dollar.
Pound (GBP) uncertain amid lack of data
The pound (GBP) lacked a clear directional bias yesterday as UK economic data remained thin on the ground, although it was able to edge up against weaker peers.
Mixed comments from Bank of England (BoE) policymakers failed to decisively move the pound during European trade, as officials gave a range of views when questioned by Parliament’s Treasury committee.
British economic data remains in short supply today, potentially muting the pound. Any movement may be driven by bond market dynamics and domestic headlines.
Euro (EUR) struggles despite German trade data
The euro (EUR) was subdued yesterday, as EUR investors seemed uninspired by Germany’s latest trade data.
Although the country’s trade surplus widened to €21.3bn in July – its largest since August 2024 – this was due to imports falling more sharply than exports.
Looking ahead, the euro could face muted movement today as EUR investors brace for tomorrow’s European Central Bank (ECB) interest rate decision.
US dollar (USD) trims gains despite risk-off mood
The US dollar (USD) initially gained ground yesterday as a souring mood supported the safe-haven ‘greenback’.
However, the currency struggled to sustain its upside and trimmed its gains in the evening, amid US-Canada trade tensions and a slight pullback in Federal Reserve interest rate hike bets.
Global risk dynamics could drive USD today amid a lack of American economic data. If sentiment remains downbeat, the safe-haven ‘greenback’ may strengthen.
Canadian dollar (CAD) lifted by rising oil prices
The oil-linked Canadian dollar (CAD) rose yesterday as Brent crude – the global benchmark for oil – broke above $99 per barrel, hitting its highest level since late July.
Oil prices and US-Canada trade tensions could pull CAD in different directions today, if crude continues to strengthen while trade war fears worsen.
Data releases
09:40 NZD RBNZ Silk Speech