Australian Dollar (AUD) Weakens amid Risk Aversion
The risk-sensitive Australian Dollar (AUD) fell on Wednesday as risk appetite soured. Worries about the fragility of the global banking system spooked investors.
The ‘Aussie’ was underpinned by upbeat data releases from China’s industrial and retail sectors, however, which helped to cushion the downside.
A forecast drop in unemployment could boost AUD today. On the other hand, any dovish signals in the Reserve Bank of Australia’s (RBA) latest bulletin could dampen enthusiasm for the ‘Aussie’.
New Zealand Dollar (NZD) Muted amid Risk-Off Mood
The risk-sensitive New Zealand Dollar (NZD) saw subdued movements on Wednesday amid a cautious market mood.
The possibility of a softer pace of policy tightening from the US Federal Reserve prevented drastic losses for the ‘Kiwi’, however.
An expected contraction in New Zealand’s fourth-quarter GDP could pull NZD lower today if it prints as forecast.
Pound (GBP) Underpinned by Fresh OBR Forecasts
The Pound (GBP) lost ground yesterday as the pullback in Bank of England (BoE) rate hike bets continued.
GBP saw deeper losses limited by fresh forecasts from the Office for Budget Responsibility (OBR), however. The OBR forecast that the UK would narrowly dodge a technical recession in 2023.
A lack of data is likely to leave Sterling at the mercy of domestic headwinds and risk appetite today.
Euro (EUR) Nosedives amid Fears of EU Banking Collapse
Chaos in the European banking sector saw the Euro (EUR) plummet yesterday, after shares in Credit Suisse cratered by 30%.
The possibility of a dovish pivot from the European Central Bank (ECB) in the face of the crisis deepened losses for EUR.
The ECB decision is in focus later tonight. Economists expect the bank to push ahead with a half-point hike, but will a more dovish outlook dent EUR?
US Dollar (USD) Bolstered by Risk Appetite Pullback
The US Dollar (USD) rallied on Wednesday. A sharp pullback in risk appetite bolstered the safe-haven ‘Greenback’.
USD’s gains were capped by disappointing data releases, however. February’s retail sales fell by more than forecast, whilst negative PPI figures further softened Federal Reserve rate hike bets.
Looking to today, the initial jobless claims figures could impact USD. Otherwise, risk appetite may continue to drive movement.
Canadian Dollar (CAD) Muted despite Plummeting Oil Prices
A 5% fall in crude oil prices kept pressure on the Canadian Dollar (CAD) yesterday. A stronger US Dollar prevented the commodity-tied ‘Loonie’ from seeing any substantial losses, however.
With no data releases today, movement in CAD could be driven by oil price dynamics.
Mar 16th 07:45 NZD GDP Growth Rate (Q4) -0.2%
Mar 16th 10:30 AUD Unemployment Rate (Feb) 3.6%
Mar 16th 10:30 AUD RBA Bulletin
Mar 16th 22:30 USD Initial Jobless Claims (11/Mar) 205,000
Mar 16th 23:15 EUR ECB Interest Rate Decision 3.5%
Mar 16th 23:45 EUR ECB Press Conference