Australian Dollar (AUD) Fluctuates after Disappointing Employment Data
The Australian Dollar (AUD) saw some volatile movements yesterday. The ‘Aussie’ initially tumbled after worse-than-expected jobs data, with the unemployment rate jumping from 3.5% to 3.7%.
A risk-on market mood helped the ‘Aussie’ recover, only for AUD to fall back again during European trade.
With no data releases today, the Australian Dollar could recoup losses if risk appetite persists.
New Zealand Dollar’s (NZD) Losses Cushioned by Upbeat Growth Forecasts
A stronger US Dollar (USD) and a downbeat mood in the commodity markets weighed on the New Zealand Dollar (NZD) yesterday.
A recovery in global risk appetite and upbeat forecasts in New Zealand’s 2023 budget limited NZD’s losses, though.
Looking to this morning, a narrowing in the country’s trade deficit could inspire confidence in the ‘Kiwi’.
Pound (GBP) Underpinned by BoE Rate Hike Bets
The Pound (GBP) weakened against its stronger peers on Thursday as a lack of UK data left Sterling without much support.
Comments from Bank of England (BoE) officials helped to cushion the downside, however. Policymakers reiterated the fact that second-round inflation effects may require tighter monetary policy.
A sparse data calendar for GBP today could see movement in the currency driven by further BoE bets.
Euro (EUR) Slips as ECB Hints at End to Policy Tightening
The Euro (EUR) trended lower over the course of Thursday following comments from European Central Bank (ECB) Vice-President Luis de Guindos, who signalled that the bank’s tightening cycle may nearly be over.
Thin trading conditions, due to market closures in Europe for Ascension Day, also kept EUR subdued.
This afternoon a further 0.5% decline in German PPI could dent EUR, with signs of easing inflationary pressures potentially denting ECB rate hike bets.
US Dollar (USD) Surges as Resolution to US Debt Crisis in Sight
The US Dollar found fresh strength on Thursday amid reports that the US debt default may be averted.
Federal Reserve rate hike bets also lifted USD yesterday. Multiple policymakers spoke in favour of raising interest rates, whilst a surprise decline in jobless claims indicated a still-tight labour market.
The early hours of Saturday are set to bring a speech from Fed Chair Jerome Powell. Any hawkish signals from Powell could bolster USD.
Canadian Dollar (CAD) Lifted by Resurgent USD
The Canadian Dollar (CAD) benefitted from a stronger US Dollar on Thursday. Gains for the commodity-linked ‘Loonie’ were capped by a downturn in oil prices, though.
Today’s retail sales figures could prompt losses in CAD if they show a slump in sales, as expected.
May 19th 08:45 NZD Balance of Trade (Apr) NZ$-0.235bn
May 19th 16:00 EUR German PPI (Apr) -0.5%
May 19th 22:30 CAD Retail Sales (Mar) -1.4%
May 20th 00:55 EUR ECB Schnabel Speech
May 20th 01:00 USD Fed Chair Powell Speech