Australian Dollar (AUD) Stumbles after Downbeat PMIs
The Australian Dollar (AUD) slipped at the end of last week after poor March PMIs. Output unexpectedly contracted across both manufacturing and services businesses.
A retreat in global risk appetite also weighed on the risk-sensitive ‘Aussie’ amid fresh fears about global financial stability.
AUD could come under additional pressure today if the market mood remains risk-off.
New Zealand Dollar (NZD) Dented by Risk-Off Mood
The cautious market mood also weighed on the risk-sensitive New Zealand Dollar (NZD) on Friday, with the ‘Kiwi’ shedding earlier gains to end the week on a sour note.
With a lack of data today, NZD could dip lower if banking sector jitters persist.
Disappointing PMIs Weigh on the Pound (GBP)
Above-forecast retail sales figures for February initially lifted the Pound (GBP) on Friday.
However, Sterling lost ground as the day went on. GBP faced headwinds following worse-than-expected PMI reports for March.
The latest distributive trades survey, a gauge of health for the retail sector, could deepen Sterling’s losses if it falls as expected this evening. UK retail data has bucked forecasts in recent months though, and a surprise to the upside could shore up GBP.
Euro (EUR) Falls as Fears of European Banking Crisis Intensify
The Euro (EUR) declined on Friday amid fresh fears of a collapse in the European banking sector. Shares in Deutsche Bank nosedived at the end of last week as the cost of preventing a bond default increased.
Steeper losses for EUR may have been prevented by an above-forecast rise in Eurozone service sector output.
Looking to today, the latest German business confidence figures could boost the Euro if they remain close to previous highs.
US Dollar (USD) Bolstered by Risk Appetite Retreat
The US Dollar (USD) rallied on Friday as a pullback in global risk appetite bolstered the safe-haven ‘Greenback’.
March’s better-than-expected PMIs also boosted USD. On the other hand, a surprise decline in February’s durable goods orders limited gains for the US Dollar.
If the market mood stays downbeat, the ‘Greenback’ could see additional gains. Another contraction in the Dallas Fed manufacturing index could keep pressure on USD, however.
Canadian Dollar (CAD) Climbs after Optimistic Retail Sales Data
Upbeat retail sales data and a rallying US Dollar lent support to the Canadian Dollar (CAD) on Friday. However, the commodity-linked ‘Loonie’ saw its gains capped by a drop in oil prices.
A further downturn in oil prices could cause deeper losses in the Canadian Dollar today.
Mar 27th 18:00 EUR German Ifo Business Climate (Mar) 90.9
Mar 27th 20:00 GBP CBI Distributive Trades (Mar) -18
Mar 28th 00:30 USD Dallas Fed Manufacturing Index (Mar) -10