Australian Dollar (AUD) Edges Higher amid Positive Signs from Chinese Economy
The Australian Dollar (AUD) ticked broadly higher yesterday. The risk-sensitive ‘Aussie’ came under pressure from a cautious market mood.
AUD found support from further positive signs from the Chinese recovery, however. A rise in iron ore prices also benefitted the ‘Aussie’.
The final reading of February’s services PMI could pull AUD lower today if the sector remains in negative territory.
New Zealand Dollar (NZD) Subdued as Mood Remains Cautious
Waning risk appetite undermined the New Zealand Dollar (NZD) yesterday. However these losses were tempered by the ‘Kiwi’s positive correlation with the Australian Dollar, as well as an upbeat mood in the commodities market.
Looking ahead, a forecast rise in February’s consumer confidence could provide a boost to NZD.
Pound (GBP) Drops as BoE Bet Pullback Continues
The Pound (GBP) continued to be assailed by headwinds on Thursday as GBP investors continued to reprice Bank of England (BoE) interest rate expectations.
Market jitters over the ‘Windsor Framework’ also kept pressure on Sterling.
Looking to today, the final reading of February’s services PMI could push GBP higher if confirms a positive reading for the sector.
Euro (EUR) Pulled Lower by Headline Inflation Drop
The Euro (EUR) slipped yesterday as the single currency was undermined by its strong negative correlation with the US Dollar (USD).
EUR was underpinned by a rise in core inflation, however. Hawkish comments from ECB President Christine Lagarde also lent support to the Euro.
A forecast narrowing in Germany’s trade surplus could see the Euro slip. On the other hand, confirmation of growth in the Eurozone’s services sector could bolster EUR.
US Dollar (USD) Climbs on Inflation Expectations
Stronger-than-expected unit US labour cost data propelled the US Dollar higher on Thursday. The surprise rise in labour costs stoked suggestions US inflation may be stickier than previously thought.
Alongside another fall in initial jobless claims this reinforced bets on further interest rate increases from the Federal Reserve.
A forecast positive reading for the latest ISM services sector PMI could boost USD today.
Canadian Dollar (CAD) Bolstered by Rising Oil Prices
A further rise in oil prices bolstered the commodity-linked Canadian Dollar (CAD) on Thursday. A stronger US Dollar lent further support to the ‘Loonie’.
With no data releases today, movement in CAD is likely to remain tied to oil price dynamics.
Mar 3rd 08:00 AUD Judo Bank Services PMI (Feb) 49.2
Mar 3rd 17:00 EUR German Balance of Trade (Jan) €8.6bn
Mar 3rd 19:00 EUR S&P Global Services PMI (Feb) 53
Mar 3rd 19:30 GBP S&P Global/CIPS Services PMI (Feb) 53.3
Mar 4th 01:00 USD ISM Non-Manufacturing PMI (Feb) 54.5