Australian Dollar (AUD) Lifted by Above-Forecast Chinese Growth
The Australian Dollar (AUD) was boosted by better-than-expected Chinese GDP figures yesterday, thanks to AUD’s status as a proxy currency for the Chinese economy.
The risk-sensitive ‘Aussie’ also found support from a risk-on mood, as well as some hawkish signals from the Reserve Bank of Australia’s (RBA) meeting minutes.
The upbeat Chinese data could continue to bolster risk appetite today. This may keep AUD trending higher.
New Zealand Dollar (NZD) Boosted by Risk-On Mood
A cheery mood among investors pushed the risk-sensitive New Zealand Dollar (NZD) higher yesterday.
Markets were upbeat amid signs of a strong economic recovery in China – the world’s second-largest economy.
The New Zealand Dollar may see additional gains today if the risk tone remains positive.
Pound (GBP) Climbs as Wage Growth Stays Strong
Evidence of persistently strong wage growth kept the Pound (GBP) buoyed on Tuesday. As average earnings exceeded forecasts, markets increased the odds of another Bank of England (BoE) rate rise next month.
On the other hand, signs of slackness in the UK labour market kept GBP’s upward movement restricted. The British jobless rate unexpectedly rose from 3.7% to 3.8%.
The Pound could see its fortunes reversed this afternoon if March’s inflation edges lower as expected. Inflation is set to slip from double digits to 9.8%.
Euro (EUR) Wobbles as German Sentiment Falters
A surprise fall in German investor morale weighed on the Euro (EUR) yesterday. The country’s ZEW economic sentiment index fell to 4.1 in April versus the expected rise to 15.3.
A positive market mood also kept pressure on EUR, as well as bets on a smaller scale of interest rate hikes from the European Central Bank (ECB).
The final reading of Eurozone inflation could add to the Euro’s downturn today if it confirms a sharp slowdown last month.
US Dollar’s (USD) Losses Limited by Hawkish Fed Speeches
The US Dollar (USD) weakened over the course of Tuesday. A lack of data left the safe-haven ‘Greenback’ vulnerable to a return of global risk appetite.
However, USD’s losses were cushioned by some hawkish comments from Federal Reserve policymaker James Bullard.
USD will continue to see a sparse data calendar today. The currency’s losses could deepen if the market mood stays risk-on.
Canadian Dollar (CAD) Drops as March’s Inflation Cools
A drop in March’s inflation pulled the Canadian Dollar (CAD) lower on Tuesday. A decline in crude oil prices also inspired losses in the commodity-tied ‘Loonie’.
CAD could weaken further tonight amid an expected fall in year-on-year PPI. Easing producer inflation could increase bets on future Bank of Canada (BoC) rate cuts.
Apr 18th 16:00 , GBP , Inflation Rate (Mar) , 9.8%
Apr 18th 19:00 , EUR , Inflation Rate (Mar) , 6.9%
Apr 18th 22:30 , CAD , PPI YoY (Mar) , 1.9%
Apr 19th 01:00 , EUR , ECB Schnabel Speech ,