Australian Dollar (AUD) Boosted by Exports Recovery
Better-than-expected trade data lifted the Australian Dollar (AUD) on Thursday. Australia’s trade surplus widened to a nine-month high of AU$15.27bn as commodity exports to China rebounded.
AUD’s gains were restricted by a surprise downturn in China’s manufacturing sector, however.
Today, the ‘Aussie’ could climb if the Reserve Bank of Australia’s (RBA) policy statement contains any hawkish signals.
New Zealand Dollar (NZD) Buoyed by RBNZ Rate Hike Bets
The New Zealand Dollar (NZD) continued to find support from Reserve Bank of New Zealand (RBNZ) rate hike bets yesterday.
Upbeat employment data earlier in the week initially prompted the bets, with hawkish comments from RBNZ Deputy Governor Christian Hawkesby strengthening them.
Amid a lack of New Zealand data today, the market mood could drive the risk-sensitive ‘Kiwi’. Will a bearish tone see NZD stumble?
Pound (GBP) Subdued despite Service Sector Growth
The Pound (GBP) was muted on Thursday, despite an upward revision in the final reading of April’s service sector PMI.
UK service sector activity rose to a 12-month high of 55.9, lending Sterling some support. However, a risk-off market mood saw the Pound slip against its safer peers.
Bank of England (BoE) rate hike bets could keep the Pound buoyed today amid a lack of data.
Euro (EUR) Tanks after ECB Interest Rate Decision
The Euro (EUR) fell sharply in the wake of the European Central Bank’s (ECB) interest rate decision on Thursday. The ECB hiked rates by 25bps, representing a slowdown in the bank’s tightening cycle.
Hawkish comments from ECB President Christine Lagarde helped cushion EUR’s losses, however.
EUR could face additional selling pressure today if Eurozone retail sales decline as expected.
US Dollar (USD) Treading Water as Fed Hints at June Pause
The US Dollar (USD) traded within a narrow range on Thursday after having tumbled overnight. USD fell after the Federal Reserve hiked interest rates by 25bps and signalled a June pause.
On the other hand, a risk-off mood prevented a sharper downturn in the safe-haven ‘Greenback’.
The US Dollar could tumble today if high-impact employment data prints as expected. Non-farm payrolls are forecast to fall dramatically, whilst unemployment is set to tick higher.
Canadian Dollar (CAD) Zigzags Higher following Trade Data
The Canadian Dollar (CAD) wavered higher yesterday. A slight downturn in oil prices pressured the commodity-linked currency, but a widening in Canada’s trade surplus lifted CAD exchange rates.
A forecast rise in April’s unemployment rate could weaken CAD today if the data prints as expected.
May 5th 11:30 AUD RBA Statement on Monetary Policy
May 5th 16:00 EUR German Factory Orders (Mar) -2.2%
May 5th 19:00 EUR Retail Sales (Mar) -0.1%
May 5th 22:30 CAD Unemployment Rate (Apr) 5.1%
May 5th 22:30 USD Non Farm Payrolls (Apr) 180,000
May 5th 22:30 USD Unemployment Rate (Apr) 3.6%