Australian Dollar (AUD) Bolstered by Upbeat Jobs Data
Upbeat employment data pushed the Australian Dollar (AUD) higher on Thursday. Unemployment in February fell to 3.5%, close to previous 50-year lows.
This was driven by a larger-than-expected increase in employment growth last month. The strong labour figures helped boost Reserve Bank of Australia (RBA) interest rate expectations.
With no significant data releases today, any movement in AUD exchange rates may be tied to investor risk appetite.
New Zealand Dollar (NZD) Ticks Lower after Dismal GDP Figures
The New Zealand Dollar (NZD) edged lower on Thursday. An above-forecast contraction in New Zealand’s economy drove losses in the ‘Kiwi’.
Similarly to the Australian Dollar, movement in NZD is likely to be linked to market sentiment.
Pound (GBP) Falls as Markets Continue to Pare Back BoE Bets
The Pound (GBP) weakened on Thursday amid another pullback in Bank of England (BoE) rate hike bets.
The cautious bets came amid signs of instability in the global banking sector following the collapse of Silicon Valley Bank (SVB) and European bank share selloff.
Sterling will see no data releases today, potentially limiting movement in the Pound through the remainder of the week.
Euro (EUR) Trades Narrowly after ECB Interest Rate Decision
Movement in Euro (EUR) was limited yesterday after European Central Bank’s (ECB) decision to hike interest rates by 50bps.
ECB President Christine Lagarde’s hinted that further rate hikes would be data-driven which dragging on EUR.
The final reading of Eurozone inflation data for February could underpin the Euro today if they confirm a rise in core inflation.
US Dollar (USD) Underpinned by Better-Than-Expected Jobless Claims
The US Dollar (USD) slipped yesterday as US Treasury bond yields fell. A below-forecast rise in jobless claims helped to underpin USD, however.
The safe-haven ‘Greenback’ also found support from bets on a 25bps rate hike from the Fed next week.
Looking to today, USD could find support from the latest Michigan consumer sentiment figures if household confidence continues to improve.
Canadian Dollar (CAD) Edges Lower as Oil Prices Fall Further
The commodity-linked Canadian Dollar (CAD) ticked lower as oil prices languished at a one-year low. A weaker US Dollar also weighed on the ‘Loonie’.
Looking ahead, forecast cooler PPI figures for February could weigh on CAD as well as any additional oil price weakness.
Mar 17th 20:00 EUR Inflation Rate (Feb) 8.5%
Mar 17th 22:30 CAD PPI (Feb) 0.2%
Mar 17th 20:00 USD Industrial Production (Feb) 0.2%
Mar 18th 00:00 USD Michigan Consumer Sentiment (Mar) 67