Australian Dollar (AUD) Boosted by China’s Services Rebound
Upbeat data for China’s services sector pushed the Australian Dollar (AUD) higher at week’s end. A return of risk appetite prompted further gains for the risk-sensitive ‘Aussie’.
AUD also found support from bets on further policy tightening from the Reserve Bank of Australia (RBA).
With no significant data releases today, the ‘Aussie’ is likely to be affected by any shifts in risk appetite.
New Zealand Dollar (NZD) Pulled Lower by Tumbling Consumer Confidence
The New Zealand Dollar (NZD) came under pressure following a slip in consumer confidence on Friday. The index fell from 83.4 to 79.8 in February, rather than rising to 86, amid soaring rents and high inflation.
The risk-sensitive ‘Kiwi’ was supported by a risk-on mood and its correlation to the Australian Dollar, however, thereby limiting losses.
A lack of data for NZD may leave the currency at the mercy of market mood today.
Pound’s (GBP) Gains Supported by BoE Rate Hike Bets
Renewed Bank of England (BoE) rate hike bets bolstered the Pound (GBP) at the end of last week. The upbeat mood surrounding GBP came after optimistic comments from BoE Chief Economist Huw Pill.
An upward revision to February’s services sector PMI also buoyed Sterling on Friday.
UK data is thin on the ground today, so movement in the Pound may be limited.
Euro (EUR) Falls as January’s PPI Slumps
The Euro (EUR) slipped on Friday. The safer currency struggled amid an upbeat market mood. A larger-than-forecast fall in January’s PPI figures heaped further pressure on EUR.
The single currency’s losses were limited by hawkish rhetoric from multiple European Central Bank (ECB) policymakers, however.
Looking to today, a forecast recovery in January’s Eurozone retail sales could help EUR to climb.
US Dollar (USD) Fluctuates amid Better-than-Expected PMI
The US Dollar (USD) managed to regain lost ground over the course of Friday. A better-than-expected ISM non-manufacturing PMI helped to push USD back close to its opening position.
A risk-on mood kept the safe-haven ‘Greenback’ from climbing higher, however.
Looking ahead, an expected slump in US factory orders could hurt the US Dollar in overnight trade.
Canadian Dollar (CAD) Slips as Oil Prices Fall
The commodity-linked Canadian Dollar (CAD) fell on Friday as oil prices slipped. The losses for oil came amid fears of a recession-driven drop in demand.
A drop in the latest reading of the Ivey PMI could weigh on CAD today if it prints as forecast.
Mar 6th 20:00 EUR Retail Sales MoM (Jan) 1%
Mar 7th 01:00 CAD Ivey PMI (Feb) 55
Mar 7th 01:00 USD Factory Orders MoM (Jan) -1.5%