Australian Dollar (AUD) Climbs as China Lifts Final Border Restrictions
A rebound in global risk appetite pushed the risk-sensitive Australian Dollar (AUD) higher on Tuesday. The removal of China’s last border restrictions for foreign tourists also boosted AUD.
Gains for the ‘Aussie’ were capped by poor business and consumer confidence figures, however.
A lack of data for AUD today could leave movement in the currency tied to market risk sentiment.
New Zealand Dollar (NZD) Bolstered by Risk-On Mood
The New Zealand Dollar (NZD) benefitted from an upbeat market mood yesterday, although weakness in the commodities market limited the ‘Kiwi’s gains.
Looking ahead, will a broadly upbeat market mood help to underpin the ‘Kiwi’ through today’s session?
Pound (GBP) Slips as Wage Growth Cools
Disappointing wage growth figures weighed on the Pound (GBP) on Tuesday. January’s wage growth eased to 5.7%.
The data stoked speculation the Bank of England (BoE) may be close to ending its tightening cycle, deepening Sterling’s losses.
Looking to today, the UK government’s Spring Budget will be in the spotlight. Could the announcement of growth boosting measures from Chancellor Jeremy Hunt help to lift the Pound?
Euro (EUR) Slips as Markets await ECB Meeting
Healthy investor risk appetite kept pressure on the Euro (EUR) yesterday. Movement in EUR was also subdued ahead of the ECB’s interest rate decision later this week.
While the ECB is expected to deliver another 50bps rate hike on Thursday, there is some uncertainty over the bank’s future policy given the current US banking crisis.
An expected recovery in Eurovision industrial production figures could bolster EUR today.
US Dollar (USD) Pushed Higher by Core Inflation Rise
The US Dollar (USD) initially fell on Tuesday amid a prevailing risk-off mood. The collapse of Silicon Valley Bank (SVB) continued stoke market jitters.
USD then regained ground as the day went on. An uptick in month-on-month core inflation revived Federal Reserve rate hike bets which bolstered the US Dollar.
A cooling of US PPI today could place fresh pressure on the ‘Greenback’. A forecast drop in February’s retail sales could also prompt losses in the US Dollar.
Canadian Dollar (CAD) Rises despite Oil Price Slump
The commodity-linked Canadian Dollar (CAD) climbed on Tuesday. A weaker US Dollar and upward revision in manufacturing sales figures bolstered CAD. Although a sharp downturn in oil prices capped these gains.
With no data releases today, movement in the ‘Loonie’ is likely to be driven primarily by oil price dynamics.
Mar 15th 07:20 USD Fed Bowman Speech
Mar 15th 20:00 EUR Industrial Production (Jan) 0.4%
Mar 15th 22:30 GBP Spring Budget
Mar 15th 22:30 USD PPI (Feb) 0.3%
Mar 15th 22:30 USD Retail Sales (Feb) -0.3%