Australian Dollar (AUD) Falls despite Above-Forecast Chinese PMI
The Australian Dollar (AUD) fell on the final day of the month, despite upbeat Chinese economic data and a positive market mood.
The losses seemed due to some repositioning among investors at the end of the first quarter of 2023.
AUD’s downside could deepen today if the final reading of March’s manufacturing PMI confirms a contraction in the sector.
New Zealand Dollar (NZD) Muted despite Risk-On Mood
The New Zealand Dollar (NZD) saw subdued movements at the end of last week. NZD’s correlation to the Australian Dollar kept pressure on the currency.
The risk-sensitive ‘Kiwi’ found support over the course of Friday from a return of risk appetite, which limited the currency’s losses.
NZD could consolidate its gains today if the market mood remains risk-on.
Pound (GBP) Edges Higher as UK Dodges 2022 Recession
The Pound (GBP) firmed at the end of last week. Sterling’s gains were reinforced by an upward revision in fourth-quarter GDP.
The final reading of Q4 GDP printed a 0.1% expansion, which means that the UK economy was more resilient than expected.
With a lack of UK economic data today, Sterling’s movement may be much more limited.
Euro (EUR) Pulled Lower by Headline Inflation Decline
A drop in headline Eurozone inflation weighed on the Euro (EUR) on Friday. A risk-on mood also generated headwinds for EUR.
On the other hand, stubbornly high core inflation kept European Central Bank (ECB) rate hike bets buoyed and prevented drastic losses for the Euro.
The final reading of the Eurozone’s manufacturing sector PMI could hurt the Euro today if it confirms a March contraction.
US Dollar (USD) Firms despite Cooler Inflation Data
The US Dollar (USD) firmed on Friday, despite the latest core PCE price index – the Federal Reserve’s preferred measure of inflation – printing below forecasts.
The upward movement may have been due to an end-of-quarter market correction.
At midnight, the US ISM manufacturing PMI is due out. If it shows a deepening contraction, USD could decline.
Canadian Dollar (CAD) Gains after Positive GDP Figures
Rising oil prices underpinned the commodity-linked Canadian Dollar (CAD) on Friday, as well as above-forecast GDP figures pointing to an expansion in the Canadian economy.
CAD could rise today if March’s manufacturing output remains in positive territory.
Apr 3rd 09:00 AUD Judo Bank Manufacturing PMI (Mar) 48.7
Apr 3rd 18:00 EUR S&P Global Manufacturing PMI (Mar) 47.1
Apr 3rd 18:30 GBP S&P Global/CIPS Manufacturing PMI (Mar) 48
Apr 3rd 23:30 CAD S&P Global Manufacturing PMI (Mar) 51
Apr 4th 00:00 USD ISM Manufacturing PMI (Mar) 47.5