Australian Dollar (AUD) Stumbles after Downbeat Chinese Manufacturing Data
Another sizable contraction in China’s manufacturing sector pulled the Australian Dollar (AUD) lower yesterday.
However, helping to temper AUD’s losses were hotter-than-expected domestic inflation in May.
Looking to today, the final reading of May’s manufacturing PMI could deepen losses for the ‘Aussie’ if it confirms the sector contracted.
New Zealand Dollar (NZD) Slips despite Upbeat Business Confidence Figures
The New Zealand Dollar (NZD) also weakened on Thursday amid evidence of a slowdown in China’s manufacturing sector.
NZD could fall further today if additional Chinese manufacturing data cements expectations of a faltering recovery.
Pound (GBP) Buoyed by Persistent BoE Bets
Bets on additional policy tightening from the Bank of England (BoE) underpinned the Pound (GBP) yesterday.
However, a fall in UK business confidence for the first time in three months, ultimately limited Sterling’s upside potential.
The final reading of May’s manufacturing PMI this evening could see GBP lose ground if it confirms May’s contraction.
Euro (EUR) Dips as Cooler German Inflation Prompts ECB Bet Pullback
The Euro (EUR) came under pressure on Thursday after German inflation fell by more than forecast. The figures prompted markets to pare back European Central Bank (ECB) rate hike bets.
German unemployment also held steady at its highest level in two years. Signs of a cooling German labour market also weighed on EUR.
This evening’s Eurozone data could add to bets on a slower pace of tightening from the ECB. May’s inflation is set to soften to 6.3%, although persistently low unemployment could underpin the single currency.
US Dollar (USD) Bolstered by Job Openings Rise
An unexpected rise in April’s job openings helped the US Dollar (USD) to recoup its losses on Thursday. The signs of a tight labour market also caused investors to price in further interest rate increases from the Federal Reserve.
Interest in the currency was somewhat restrained however as markets awaited the US Congress vote on the debt ceiling deal.
A negative reading of May’s manufacturing PMI overnight could curb any gains for the US Dollar today.
Canadian Dollar (CAD) Climbs as Economy Expands Above Forecasts
The Canadian Dollar (CAD) was buoyed by better-than-expected first quarter GDP growth figures yesterday. The commodity-tied ‘Loonie’ was hobbled by decline oil prices, however.
Meanwhile, this evening’s manufacturing PMI could stifle CAD demand today if growth in Canada’s factory sector remains weak.
June 1st 09:00 AUD Judo Bank Manufacturing PMI (May) 48
June 1st 16:00 EUR German Retail Sales (Apr) 1%
June 1st 18:30 GBP S&P Global/CIPS Manufacturing PMI (May) 46.9
June 1st 19:00 EUR Inflation Rate (May) 6.3%
June 1st 19:00 EUR Unemployment Rate (Apr) 6.5%
June 2nd 00:00 USD ISM Manufacturing PMI (May) 47