Australian Dollar (AUD) Weakens as Unemployment Remains Unchanged
The Australian Dollar (AUD) fell against its peers on Thursday as a weaker-than-expected jobs report dampened support for the Antipodean currency.
Australia’s unemployment rate missed expectations of a fall to 3.9% in March, while employment change also fell significantly below forecasts; as seasonally adjusted hours worked fell by 0.6%, the head of labour statistics at the ABS, said that illness and floods in NSW were to blame.
Looking ahead, Chinese GDP may have some ongoing impact on the ‘Aussie’, although the main trading impetus today is likely to come from the Reserve Bank of Australia (RBA) meeting minutes. If policymakers’ comments are encouraging, AUD could trend up.
New Zealand Dollar (NZD) Buoyed by Business PMI
The New Zealand Dollar (NZD) attracted support towards the end of last week, as New Zealand’s business PMI exceeded expectations, climbing above February’s reading.
The data marked the seventh straight month of expansion in the country’s factory sector, as employment rose to a level not seen in six months and both new orders and finished good stocks rose to their highest since last October.
The ‘Kiwi’ is likely to trade on AUD dynamics today, given a lack of other trading stimulus. If the ‘Aussie’ climbs, NZD might post gains.
Pound (GBP) Dented by Thin-Trading Conditions
The Pound (GBP) weakened on Thursday, as a lull in data and thin trading conditions robbed the currency of any support.
Further weighing upon Sterling were persistent concerns over rapidly rising living costs, as well as political headwinds over Boris Johnson’s breaking of lockdown rules. Some economists were hopeful that the Bank of England (BoE) may hike interest rates in May, capping further downside.
Any further indications of forward action from the BoE may influence GBP today, as the UK economic docket remains quiet.
Euro (EUR) Plunges as ECB Strikes a Dovish Note
The Euro tumbled against its peers towards the end of last week, as dovish rhetoric from the ECB dampened EUR sentiment.
Not only did the central bank leave its policy unchanged at its April meeting, but ECB President Christine Lagarde stressed that sequencing would remain unchanged, meaning no rate hike before the end of the asset purchase programme in the third quarter.
Given a lack of significant data today, the single currency will likely trade on risk sentiment and any other external factors. Fears of a recession may dampen EUR trading, in the wake of US Treasury Secretary Janet Yellen’s comments last week.
US Dollar (USD) Firms despite Poor Retail Data
US Dollar (USD) bulls seemed unaffected last Thursday by the disappointing release of America’s retail figures, which showed that sales increased by 0.5% in March rather than the 0.6% expected.
Neither were investors too concerned that initial jobless claims increased in the first full week of April. Lending support, the University of Michigan’s consumer sentiment index increased to 65.7 in April, versus the 59 forecast.
Last week’s industrial production release may still influence ‘Greenback’ trading today, in the absence of any subsequent data. Furthermore, headwinds resulting from the Ukraine conflict could inspire a risk-on mood, buoying USD.
Canadian Dollar (CAD) Rises while Oil Prices Slide
The Canadian Dollar (CAD) managed to firm against several peers towards the end of last week, despite the fact that WTI crude oil was depreciating in value. Lending potential upside, Canadian manufacturing sales posted stronger than anticipated growth of 4.2% in February 2022.
Data Releases
Apr 19th 11:30 AUD RBA Meeting Minutes N/A