Australian Dollar (AUD) Plunges amid Risk-Off Mood
The risk-sensitive Australian Dollar (AUD) stumbled at the end of last week as risk appetite soured. The latest Chinese services PMI rose by more than forecast, however, which cushioned AUD’s losses.
The Reserve Bank of Australia’s (RBA) dovish pivot also weighed on the ‘Aussie’ after the release of the central stability review documents on Thursday. AUD saw thin trade on Friday due to a market closure.
The ‘Aussie’ could regain lost ground today if business and consumer confidence improve as forecast.
New Zealand Dollar (NZD) Slips amid Risk-Off Mood
A risk-off market mood dented confidence in the risk-sensitive New Zealand Dollar (NZD) on Thursday. A generally downbeat mood in the commodity markets also kept pressure on the ‘Kiwi’.
Due to the Easter holidays, NZD saw limited trade on Friday.
The ‘Kiwi’ could see deeper losses today if the market mood remains cautious.
Pound (GBP) Drops amid Mixed Rate Hike Signals from BoE
Signs of a possible slowdown in policy tightening from the Bank of England (BoE) saw the Pound slip on Thursday. Markets began to reprice their rate hike expectations after mixed signals from BoE officials.
Sterling saw little movement on Friday due to the Easter holiday, meaning that markets were closed.
The Pound could continue to lose ground today if March’s retail sales ease as forecast.
Euro (EUR) Boosted by Hawkish ECB Rhetoric
The Euro (EUR) benefitted from a risk-off mood on Thursday. Hawkish comments from European Central Bank (ECB) policymaker Philip Lane also bolstered EUR.
Speaking on Thursday, Lane signalled that the ECB may hike interest rates again in May.
The Euro could see its fortunes reversed today if retail sales slip as forecast.
US Dollar (USD) Firms despite Rise in Jobless Claims
The safe-haven US Dollar (USD) was pushed higher by a retreat in global risk appetite on Thursday. A larger-than-expected rise in jobless claims pointed to a cooler labour market, however, and capped USD’s gains.
Additionally, the release of the latest non-farm payrolls data infused volatility into the ‘Greenback’ on Friday.
If markets continue price out any further rate hikes from the Federal Reserve then USD could give up some of its gains this week.
Canadian Dollar (CAD) Bolstered by Better-than-Expected Jobs Data
The Canadian Dollar (CAD) was boosted by upbeat employment data at the close of last week. The commodity-tied ‘Loonie’ saw further movement on Friday off the back of shifts in oil prices.
Amid a lack of data today, oil price dynamics could continue to drive CAD exchange rates.
Apr 11th 09:01 GBP BRC Retail Sales Monitor (Mar) 4.2%
Apr 11th 10:30 AUD Westpac Consumer Confidence Index (Apr) 79.7
Apr 11th 10:30 AUD NAB Business Confidence (Mar) -2
Apr 11th 19:00 EUR Retail Sales (Feb) 0.2%