Australian Dollar (AUD) Climbs as PBoC Leaves Rates Unchanged
News that the People’s Bank of China (PBoC) left loan rates unchanged lifted the Australian Dollar (AUD) yesterday.
Additionally, expectations of a more hawkish forward path from the Reserve Bank of Australia (RBA) lent support to AUD.
The ‘Aussie’ could shed some of its gains today if April’s PMIs surveys reveal deepening contractions in Australia’s private sector, as expected.
New Zealand Dollar (NZD) Volatile after Surprise Inflation Cooldown
The risk-sensitive New Zealand Dollar (NZD) fluctuated yesterday. NZD initially tumbled following softer-than-expected inflation data overnight. A risk-off mood added to the currency’s losses.
A weaker US Dollar (USD) and a recovery in risk appetite later in the day helped the ‘Kiwi’ to recover some lost ground, however.
With no significant data releases today, movement in NZD may be driven by any shifts in risk appetite.
Pound (GBP) Underpinned by BoE Bets
Persistent bets on a 25bps rate hike from the Bank of England (BoE) in May propped up the Pound (GBP) on Thursday.
However, Sterling’s gains were capped by expectations that the May hike could be the central bank’s last.
A fall in March’s retail sales could dent confidence in GBP today, although a strong performance in the UK services PMI could limit Sterling’s downturn.
Euro (EUR) Edges Higher amid Mixed ECB Signals
The Euro (EUR) trended higher over the course of Thursday. A risk-off mood lifted the single currency, as well as bets on further European Central Bank (ECB) rate hikes.
Conversely, mixed signals from the latest ECB minutes limited gains for EUR amid evidence of a split amongst policymakers.
April’s PMIs for the Eurozone may buoy the Euro today. Manufacturing output is set to rise alongside a still-positive reading for the bloc’s services sector.
US Dollar (USD) Loses Ground after Downbeat Data
The US Dollar (USD) started the day strong amid a cautious market mood and Federal Reserve rate hike bets.
Disappointing data releases saw the currency shed its gains as the day went on, though. Jobless claims rose above forecasts, whilst indicators of the health of the US manufacturing sector tumbled.
Evidence of poor performance in the US private sector could deepen losses for the US Dollar today if April’s PMIs slip as forecast.
Canadian Dollar (CAD) Drops as Oil Prices Tumble
The commodity-linked Canadian Dollar (CAD) was pulled lower by a drop in crude oil prices yesterday.
The ‘Loonie’ could fall further if February’s retail sales slump as forecast this evening. Additional weakness in oil prices may also keep pressure on CAD.
Apr 21st 09:00 AUD Judo Bank Services PMI (Apr) 47
Apr 21st 09:00 AUD Judo Bank Manufacturing PMI (Apr) 48
Apr 21st 16:00 GBP Retail Sales (Mar) -0.5%
Apr 21st 18:00 EUR S&P Global Services PMI (Apr) 54.5
Apr 21st 18:30 GBP S&P Global/CIPS Services PMI (Apr) 52.9
Apr 21st 22:30 CAD Retail Sales (Feb) -0.6%
Apr 21st 23:45 USD S&P Global Services PMI (Apr) 51.5