Australian Dollar (AUD) Subdued as Investors Await RBA Minutes
Bets on the Australian Dollar (AUD) were muted yesterday ahead of the latest Reserve Bank of Australia (RBA) meeting minutes.
On the other hand, a positive risk tone limited any drastic losses for the risk-sensitive ‘Aussie’.
The release of the RBA’s minutes could increase the pressure on AUD today. The minutes are likely to reiterate the central bank’s dovish pivot.
New Zealand Dollar (NZD) Dips as Private Sector Struggles
The New Zealand Dollar (NZD) stumbled yesterday following downbeat PMI figures.
According to the latest surveys, private sector activity in New Zealand slowed to a near standstill last month.
NZD could see a boost today if the latest data from China prints as expected. The world’s second-largest economy is forecast to have expanded by 2.2% in the first quarter of 2023.
Pound (GBP) Firms despite Mixed BoE Bets
Mixed Bank of England (BoE) rate hike bets capped the Pound’s (GBP) gains on Monday. A slim majority of economists polled by Reuters predicted a 25bps rate hike next month, although those asked by Bloomberg favoured a pause.
Upbeat forecasts for the UK economy kept Sterling trading in positive territory, however. The EY ITEM Club predicted that the UK would avoid a recession in 2023.
GBP could slip today if wage growth cools as forecast, as the data may prompt softer BoE bets.
Resurgent USD Weighs on Euro (EUR)
The Euro (EUR) was dented by an upbeat market mood yesterday. A strong US Dollar (USD) also dented confidence in the single currency, due to EUR’s negative correlation with USD.
However, EUR saw its losses cushioned by hawkish signals from European Central Bank (ECB) policymaker Martins Kazaks.
An expected rise in April’s reading of the economic sentiment index for Germany could boost EUR today.
US Dollar (USD) Buoyed by Fed Rate Hike Bets
Fresh bets on a 25bps rate hike from the Federal Reserve bolstered the US Dollar yesterday. Hawkish comments from Fed officials and expectations of higher inflation prompted the bets.
The safe-haven ‘Greenback’ saw its gains limited by a return of global risk appetite, however.
Looking ahead, a speech from Fed hawk Michelle Bowman could push USD higher overnight.
Canadian Dollar (CAD) Slides amid Oil Price Downturn
The commodity-tied Canadian Dollar (CAD) lost ground on Monday. The ‘Loonie’ was pulled lower by a drop in crude oil prices.
CAD could continue its decline tonight if March’s inflation cools as forecast.
Apr 18th 11:30 AUD RBA Meeting Minutes
Apr 18th 16:00 GBP Unemployment Rate (Feb) 3.7%
Apr 18th 16:00 GBP Average Earnings (Feb) 5.1%
Apr 18th 19:00 EUR German ZEW Economic Sentiment Index (Apr) 15.1
Apr 18th 22:30 CAD Inflation Rate (Mar) 4.3%
Apr 19th 03:00 USD Fed Bowman Speech