Australian Dollar (AUD) Subdued as Iron Ore Prices Stumble
The risk-sensitive Australian Dollar (AUD) ticked lower yesterday, despite a broadly upbeat market mood.
The weakness of the ‘Aussie’ appeared to be linked to commodity price dynamics. Iron ore, a key Australian export fell as much as 3%.
The Australian Dollar (AUD) could come under pressure today from the latest PMIs if they cool as expected.
New Zealand Dollar (NZD) Boosted by Bets on Softer Fed Pace
Expectations of a softer rate hike pace from the US Federal Reserve lent support to the New Zealand Dollar (NZD) on Thursday.
The ‘Kiwi’ was also bolstered by expectations of additional rate hikes from the Reserve Bank of New Zealand (RBNZ).
If a risk-on mood continues to prevail today the New Zealand Dollar could extend these gains.
Pound (GBP) Ticks Higher after BoE Meeting
The Bank of England’s (BoE) latest interest rate decision saw the Pound (GBP) firm yesterday. The BoE hiked rates by 25bps as forecast.
The BoE also left the door open for further hikes while suggesting its outlook for UK economic growth had improved.
Confidence in GBP could be dented today if the UK’s latest PMIs points to slowdown in service sector growth this month.
Euro (EUR) Dips as Consumer Confidence Wanes
A risk-off impulse in the markets weighed on the Euro (EUR) on Thursday. A surprise decline in consumer confidence also pulled EUR lower.
The single currency did, however, find some support from its negative correlation with the US Dollar.
Looking to today, a slight downturn in March’s private sector PMIs could add to EUR’s downturn.
US Dollar (USD) Slips as Post-Fed Selloff Continues
The US Dollar (USD) continued to lose ground yesterday. USD faced heavy selling pressure following the Fed’s interest rate decision.
The currency was underpinned by the latest jobless claims figures. New claims were close to previous readings, pointing to continued constraints in the labour market.
Looking ahead, the latest PMIs for the US private sectors could deepen USD’s losses if they ease as expected.
Canadian Dollar (CAD) Pushed Higher by Oil Price Rise
An uptick in crude oil prices bolstered the commodity-tied Canadian Dollar (CAD) yesterday. However, a weaker US Dollar ultimately limited the Loonie’s upside potential.
CAD could see further gains today if January’s retail sales rise as forecast. The ‘Loonie’ may also be affected by oil price dynamics.
Mar 24th 08:00 AUD Judo Bank Services PMI (Mar) 50.5
Mar 24th 17:00 GBP Retail Sales (Feb) 0.2%
Mar 24th 19:00 EUR S&P Global Services PMI (Mar) 52.5
Mar 24th 19:30 GBP S&P Global/CIPS Services PMI (Mar) 53
Mar 24th 22:30 CAD Retail Sales (Jan) 0.7%
Mar 24th 23:45 USD S&P Global Services PMI (Mar) 50.5