Australian Dollar (AUD) Climbs as PBoC Keeps Rates Steady
A return of global risk appetite lifted the risk-sensitive Australian Dollar (AUD) yesterday. Additionally, news that the People’s Bank of China (PBoC) would be leaving rates unchanged also bolstered AUD.
On the other hand, a downturn in iron ore prices capped gains for the resource-linked ‘Aussie’ on Monday.
This morning could bring a boost to AUD if the Reserve Bank of Australia’s (RBA) latest meeting minutes give any hawkish signals.
New Zealand Dollar (NZD) Bolstered by Risk-On Mood
The risk-sensitive New Zealand Dollar (NZD) was pushed higher by a positive risk tone on Monday.
The ‘Kiwi’ also found support from an upbeat mood in the commodity markets.
With no data today, NZD could rise higher if the market mood remains bullish.
Pound (GBP) Muted Ahead of Jobs Data
A positive market mood helped to lift the Pound (GBP) against its safer peers yesterday. Dovish expectations for future policy tightening from the Bank of England (BoE) capped Sterling’s gains, though.
Bets on GBP were also hindered by muted interest ahead of key employment data being released later today.
Economists expect the jobs report to show that the UK labour market remains tight and wage growth continues to climb. This could boost BoE bets and send Sterling higher.
Euro (EUR) Slips as Eurozone Industrial Sector Struggles
A slump in Eurozone industrial production kept pressure on the Euro (EUR) yesterday. Output in the sector saw a greater-than-expected decline of 4.1%.
EUR also stumbled in the face of a return of risk global risk appetite. However, the Euro saw its losses limited by upbeat growth forecasts from the European Commission (EC).
Looking ahead, a forecast decline in Germany’s ZEW economic sentiment index this evening could see the Euro spiral lower.
US Dollar (USD) Downside Cushioned by Fed Comments
An upbeat mood in the markets weighed on the safe-haven US Dollar (USD) yesterday.
Hawkish comments from Federal Reserve policymakers cushioned the currency’s losses, however. Speaking on Monday, Atlanta Fed President Raphael Bostic hinted that the central bank may undertake additional rate hikes in 2023.
Retail sales data later this evening could help USD regain ground if the sector recovers as forecast.
Canadian Dollar (CAD) Gains as Oil Prices Tick Higher
The commodity-linked Canadian Dollar (CAD) firmed on Monday amid an uptick in oil prices. However, a weaker US Dollar hindered greater gains for CAD.
The ‘Loonie’ could suffer losses today if Canadian inflation eases as forecast.
May 16th 10:30 AUD Westpac Consumer Confidence Index (May) 84.3
May 16th 11:30 AUD RBA Meeting Minutes
May 16th 16:00 GBP Average Earnings incl. Bonus (Mar) 5.8%
May 16th 19:00 EUR GDP Growth Rate (Q1) 0.1%
May 16th 19:00 EUR German ZEW Economic Sentiment Index (May) -5.3
May 16th 22:30 CAD Inflation Rate (Apr) 4.1%
May 16th 22:30 USD Retail Sales (Apr) 0.8%