Australian Dollar (AUD) Rises as Service Index Eclipses Forecasts
A surprisingly strong service sector index boosted the Australian Dollar (AUD) last Friday, with the flash PMIs showing an unexpected return to expansion in September.
Furthermore, an upbeat market mood kept the risk-sensitive ‘Aussie’ elevated against its safer peers.
Today, a light data calendar may leave the ‘Aussie’ trading without a clear direction. Risk appetite may drive most movement.
New Zealand Dollar (NZD) Rallies on Upbeat Trade
The risk-sensitive New Zealand Dollar (NZD) enjoyed the same jubilant trade as its Australian neighbour last Friday.
The cheery market atmosphere propelled the ‘Kiwi’ higher against safer peers.
Owing to a short supply of data today, the ‘Kiwi’ may be left vulnerable to shifts in risk appetite. Could bullish trade lift NZD?
Pound (GBP) Slides amid Increasing Recession Fears
Anxiety around the UK economy weighed heavily on the Pound (GBP) last Friday, sending it crashing to multi-month lows.
The deteriorating services and manufacturing sector PMI readings sparked recession jitters amongst GBP investors. This led to an increased pullback in Bank of England (BoE) rate hike bets, yielding further headwinds.
Tonight, the Confederation of British Industry (CBI) is set to release September’s distributive trades index. Improvements are forecast, but the reading is expected to remain decidedly negative, which could weaken Sterling.
Euro (EUR) Wavers amid Mixed Private Sector Data
Further weakness in September’s manufacturing index weighed on the Euro (EUR) last Friday.
However, these losses were offset somewhat by improvements in the service sector index. Traces of resilience prompted some investors to eye future hikes from the European Central Bank (ECB), yielding additional cushioning.
This evening, the latest German Ifo business climate index is scheduled to print. Economists have forecast a slight fall in confidence, which could dampen the common currency.
US Dollar (USD) Dented by Bullish Market Impulse
The US Dollar (USD) encountered selling pressure against riskier assets last Friday, due to an upbeat market mood.
This was further compounded by mixed private sector data. While the manufacturing index improved more than forecast, the services sector edged closer to stalling.
With little impactful releases due, the ‘Greenback’ may lack for direction over the course of today’s session.
Canadian Dollar (CAD) Bolstered by Rising Oil Prices
Despite retail sales missing forecasts, the crude-linked Canadian Dollar (CAD) strengthened against most peers on Thursday as oil prices climbed higher.
Today, the ‘Loonie’ may depend on oil price dynamics to gain ground against its peers.
Data Releases
Sep 25th 18:00 EUR DE Ifo Business Climate (Sep) 85
Sep 25th 20:00 GBP CBI Distributive Trades (Sep) -23
Sep 25th 23:00 EUR ECB President Lagarde Speech