Australian Dollar (AUD) Boosted by Strong Jobs Data
Upbeat jobs data pushed the Australian Dollar (AUD) higher yesterday. March’s unemployment rate printed no change at 3.5%, rather than rising to 3.6%.
The data led to fresh bets on additional policy tightening from the Reserve Bank of Australia (RBA), despite previously dovish signals.
The Australian Dollar could make gains today if the risk tone remains positive and markets continue to price in higher odds of an RBA rate hike.
New Zealand Dollar (NZD) Climbs amid Return of Risk Appetite
The risk-sensitive New Zealand Dollar (NZD) was buoyed by a return of global risk appetite on Thursday.
The ‘Kiwi’ also found support from its correlation to the Australian Dollar, as well as an unexpected leap in China’s March exports.
NZD could firm this morning if March’s manufacturing sector PMI prints a third consecutive month of growth as forecast.
Pound (GBP) Tumbles as UK Economy Flatlines
The Pound (GBP) slumped on Wednesday as February’s GDP data revealed stagnation in the UK economy.
Sterling’s fall was lessened by an upward revision in January’s GDP, however. The revision increased hopes that the UK might dodge a first-quarter downturn.
The Pound may lose further ground overnight following a speech from notably dovish Bank of England (BoE) policymaker Silvana Tenreyro.
Euro (EUR) Rises as Market Bets Converge on 25bps ECB Hike
A weaker US Dollar (USD) bolstered the Euro (EUR) yesterday, thanks to EUR’s negative correlation with USD.
Above-forecast industrial production figures for the Eurozone kept EUR underpinned later in the day, as did bets on a 25bps rate hike from the European Central Bank (ECB).
The Euro may climb higher today if the US Dollar continues to weaken.
US Dollar (USD) Slumps as Evidence of Cooling Inflation Grows
A larger-than-forecast drop in March’s PPI prompted a renewed selloff in the US Dollar yesterday. A rise in the latest jobless claims figures also weighed on the currency.
Both data releases strengthened bets on a slowdown in policy tightening from the Federal Reserve, which prompted deeper losses for USD.
The US Dollar could fall again tonight if fears of a US recession prompt a low consumer sentiment reading. Additionally, a second consecutive month of decline in retail sales could pull USD lower.
Canadian Dollar (CAD) Wobbles as Oil Prices Falter
The commodity-linked Canadian Dollar (CAD) slipped yesterday as oil prices trended lower. Additionally, CAD’s correlation to the US Dollar kept pressure on the currency.
The ‘Loonie’ could dip lower today if oil prices continue to decline.
Apr 14th 08:30 NZD Business NZ PMI (Mar) 52
Apr 14th 22:30 USD Retail Sales (Mar) -0.4%
Apr 14th 22:45 USD Fed Waller Speech
Apr 14th 23:15 USD Industrial Production (Mar) 0.2%
Apr 15th 00:00 USD Michigan Consumer Sentiment (Apr) 62
Apr 15th 01:30 GBP BoE Tenreyro Speech