Australian Dollar (AUD) Climbs on RBA Governor’s Hawkish Remarks
The Australian Dollar (AUD) was lifted by hawkish comments from Reserve Bank of Australia (RBA) Governor Philip Lowe yesterday, as the RBA chief hinted at more rate rises to come.
On the other hand, AUD’s upside was capped by disappointing GDP figures. Australia’s economy slowed more than expected in the first quarter of 2023.
This morning’s trade data could keep the ‘Aussie’ buoyed if April’s surplus remains close to previous highs.
New Zealand Dollar (NZD) Drops as Chinese Export Levels Plummet
A larger-than-forecast fall in China’s export levels weighed on the New Zealand Dollar (NZD) on Wednesday.
Concerns about China’s stuttering economic recovery worried investors, with the downbeat mood weighing on the risk-sensitive ‘Kiwi’.
Looking to today, a lack of data may see NZD continue to trade on risk appetite.
Pound (GBP) Rises despite Absence of Data
The Pound (GBP) strengthened yesterday, despite thin trading conditions.
Sterling was seemingly pushed higher by continued bets on further policy tightening from the Bank of England (BoE).
The scarcity of UK data continues today, so BoE rate hike bets could underpin the Pound.
Euro (EUR) Enjoys USD Weakness
The Euro (EUR) initially came under pressured yesterday after lacklustre German industrial production figures.
EUR was able to recoup some losses later on, thanks to the currency’s negative correlation with the US Dollar (USD).
This evening is set to bring the third estimate of first-quarter Eurozone GDP figures. If the data confirms stagnant growth in the bloc’s economy it could dent confidence in the Euro.
US Dollar (USD) Dips amid Fed Uncertainty
Uncertainty over the Federal Reserve’s next interest rate decision dented confidence in the US Dollar yesterday.
An uptick in US Treasury bond yields prevented more drastic losses for the ‘Greenback’, though.
This evening’s jobless claims could inspire USD movement. Any signs that the US labour market remains tight could boots the ‘Greenback’.
Canadian Dollar (CAD) Gains after Surprise BoC Rate Hike
An unexpected 25bps interest rate hike from the Bank of Canada (BOC) saw the Canadian Dollar (CAD) rebound from an initial downside on Wednesday. A roughly 1% rise in the price of oil also bolstered the commodity-linked ‘Loonie’.
With no data today, CAD could be pushed higher by rising oil prices.
Data Calendar
Jun 8th 11:30 AUD Balance of Trade (Apr) AU$14bn
Jun 8th 19:00 EUR GDP Growth Rate (Q1) 0%
Jun 8th 19:00 EUR Employment Change (Q1) 0.6%
Jun 8th 22:30 USD Initial Jobless Claims (Jun/03) 235,000