Australian Dollar (AUD) Buoyed by Prospect of Chinese Economic Stimulus
A buoyant mood in the commodities markets boosted the Australian Dollar (AUD) yesterday. The prospect of further stimulus from the Chinese government also bolstered AUD after cooler inflation figures.
On the other hand, signs of a weaker recovery for the Chinese economy triggered a cautious market mood, which capped gains for the risk-sensitive ‘Aussie’.
With no significant data releases today, AUD is likely to be affected by any news from China and shifts in risk appetite.
New Zealand Dollar’s (NZD) Gains Capped by Cautious Market Mood
The New Zealand Dollar (NZD) was bolstered by its correlation to the Australian Dollar on Thursday.
The risk-off mood kept gains for the risk-sensitive ‘Kiwi’ limited, however.
A forecast rise in output for New Zealand’s manufacturing sector could push NZD higher today if February’s figures print as forecast.
Pound (GBP) Bolstered by Dip-Buying
Dip-buying helped push the Pound (GBP) higher yesterday. A weaker US Dollar (USD) also helped Sterling to find its feet after Federal Reserve-motivated losses.
GBP exchange rates may also have benefitted from a slight recovery in Bank of England (BoE) rate rise bets, as markets are moving to fully price in another hike at this month’s meeting.
GDP data could boost the Pound today if it prints as forecast. The UK economy is expected to have expanded by 0.1% in January.
Euro (EUR) Drops as ECB Policymakers Split on Further Hikes
Signs of a split among European Central Bank (ECB) policymakers weighed on the Euro (EUR) yesterday.
Further developments in the Russia-Ukraine conflict also prompted a downturn in EUR on Thursday.
Looking ahead, the final reading of Germany’s inflation figures for February could bolster the Euro if it remains high.
US Dollar (USD) Slips as Jobless Claims Rise by More than Expected
The US Dollar suffered from some profit-taking on Thursday. An above-forecast rise in jobless claims also pulled USD lower amid signs the US labour market may be cooling.
Expectations of further Federal Reserve rate hikes underpinned the US Dollar, however, limiting losses.
Looking at the upcoming data releases, a strong non-farm payrolls report alongside low unemployment could see USD climb.
Canadian Dollar (CAD) Slips despite Rising Oil Prices
Improving oil prices prevented drastic losses for the commodity-linked Canadian Dollar (CAD) yesterday. The ‘Loonie’ came under pressure from the Bank of Canada’s (BoC) dovish stance, however.
An expected uptick in February’s unemployment rate today could weigh on CAD.
Mar 10th 07:30 NZD Business NZ PMI (Feb) 51.5
Mar 10th 17:00 EUR German Inflation Rate (Feb) 8.7%
Mar 10th 17:00 GBP GDP (Jan) 0.1%
Mar 10th 23:30 CAD Unemployment Rate (Feb) 5.1%
Mar 10th 23:30 USD Non Farm Payrolls (Feb) 205,000
Mar 10th 23:30 USD Unemployment Rate (Feb) 3.4%