Australian Dollar (AUD) Slides amid Souring Market Mood
The Australian Dollar (AUD) declined through Friday’s trade as the global market mood grew increasingly downbeat, dragging the risk-sensitive ‘Aussie’ with it.
Hawkish comments from Reserve Bank of Australia (RBA) Governor Philip Lowe failed to lift AUD, even though Lowe hinted at further interest rate hikes.
Amid a lack of Australian economic data today, risk appetite could continue to drive the ‘Aussie’. Tomorrow, the Judo Bank PMIs and RBA meeting minutes are in the spotlight. Will strong data and hawkish comments boost AUD?
New Zealand Dollar (NZD) Struggles amid Risk-Off Trade
The New Zealand Dollar (NZD) also fell at the end of last week.
Worries that the US Federal Reserve will continue to raise borrowing costs, which could stifle global economic growth, rattled investors. Amid the cautious mood, traders shunned the riskier ‘Kiwi’.
The key focus for NZD investors this week will be the Reserve Bank of New Zealand (RBNZ) interest rate decision. Markets are currently pricing in a 50bps rate hike, but if the central bank downgrades its peak rate projections then the ‘Kiwi’ could slump.
Pound (GBP) Rebounds amid Brexit Optimism
The Pound (GBP) faced some pressure through the first part of Friday’s session, despite a surprise rise in UK retail sales.
However, news that the UK is close to resolving a long-running post-Brexit trade dispute with the EU cheered GBP investors, helping Sterling to strengthen.
There’s no UK economic data today, so Sterling may be moved by domestic British headlines. GBP may also be muted ahead of tomorrow’s PMI reports.
Euro (EUR) Mixed amid Lack of Data
The Euro (EUR) ended last week’s session trading without a clear trajectory, as a shifting market mood saw EUR move in different directions against its safer and riskier peers.
A lack of impactful economic data from the Eurozone added to the common currency’s mixed movement.
In the ongoing absence of Eurozone data today, Russia-Ukraine news could drive EUR exchange rates.
US Dollar (USD) Continues to Climb on Hawkish Fed Comments
The US Dollar (USD) extended its impressive rally at the end of last week following hawkish comments from multiple Federal Reserve policymakers.
Following recent stronger-than-expected US economic data, Fed rate setters signalled that the bank may need to hike and hold interest rates higher than previously anticipated.
US data is also lacking today. As a result, the safe-haven ‘Greenback’ could trade in relation to the global market mood.
Canadian Dollar (CAD) Slips as Oil Prices Soften
The Canadian Dollar (CAD) stumbled against many of its peers on Friday as steady downtick in oil prices pressured the commodity-linked ‘Loonie’.
Turning to today, oil price dynamics could continue to influence the Canadian Dollar.