Australian Dollar (AUD) Bolstered by Optimistic Chinese PMIs
Better-than-expected PMIs from China provided a boost to the Australian Dollar (AUD) yesterday. The high-yield ‘Aussie’ also benefitted from a return of risk appetite.
The Chinese data helped to offset Australia’s below-forecast fourth quarter GDP and a moderation of domestic inflation in January.
The Australian Dollar will see no data releases today. This could leave AUD at the mercy of any shifts in risk appetite.
New Zealand Dollar (NZD) Soars amid Risk-On Mood
The New Zealand Dollar (NZD) rose on Wednesday. The risk-sensitive ‘Kiwi’ found support from a risk-on mood and upbeat Chinese PMIs.
With no significant data releases today, movement in the New Zealand Dollar is likely to remain tied to market risk appetite.
Pound (GBP) Tumbles after Cautious BoE Bailey Speech
Cautious comments from Bank of England (BoE) Governor Andrew Bailey caused the Pound (GBP) to plummet on Wednesday.
Bailey appeared non-committal regarding future interest rate hikes, much to the dismay of GBP investors.
Traders will be watching a speech from BoE Chief Economist Huw Pill for more monetary policy signals today. Expect Sterling to extend its losses if he echoes Bailey’s comments.
Euro (EUR) Boosted by Surprise German Inflation Rise
The Euro (EUR) made strong gains on Wednesday despite a risk-on market mood. A surprise rise in German inflation prompted renewed European Central Bank (ECB) rate hike bets and boosted EUR.
German unemployment also remained unchanged, with the country’s tight labour market also piling more pressure on the ECB to raise rates.
If Eurozone inflation slips today as forecast, it could see markets pare back ECB bets and pull EUR lower. On the other hand, if it also outperforms expectations the Euro may remain on a positive trajectory.
US Dollar (USD) Pulled Lower by Poor PMIs
An upbeat market mood saw the safe-haven US Dollar (USD) fall yesterday. A below-forecast increase in February’s manufacturing sector output deepened USD’s losses.
Firming expectations of further interest rate hikes from the Federal Reserve limited the ‘Greenback’s losses, however.
Looking to today, the latest US jobless claims release could see USD climb if they report new claims continued to fall last week.
Canadian Dollar (CAD) Pulled Lower by Oil Price Downturn
A fall in oil prices weighed on the commodity-tied Canadian Dollar (CAD) yesterday. Losses for the ‘Loonie’ were limited by an above-forecast manufacturing sector PMI, however.
In the absence of any notable CAD data movement in the Canadian Dollar may continue to be driven by oil-price dynamics.
Data Calendar
Mar 2nd 20:00 EUR Inflation Rate (Feb) 8.2%
Mar 2nd 20:00 EUR Unemployment Rate (Jan) 6.6%
Mar 2nd 22:30 EUR ECB Monetary Policy Meeting Accounts
Mar 2nd 23:30 USD Initial Jobless Claims (Feb/25) 195,000
Mar 3rd 01:00 GBP BoE Pill Speech
Mar 3rd 07:00 USD Fed Waller Speech