US Dollar regains ground amid falling jobless claims

Australian Dollar (AUD) pares back post-PMI gains

Thursday saw the Australian Dollar (AUD) fluctuate, eventually pushing higher before trimming its gains during the European trading hours.

The volatility came following mixed Australian PMI data. Although the services reading smashed forecasts, factory activity unexpectedly contracted this month.

Australian data releases are few and far between today, which may prevent the ‘Aussie’ from finding a clear direction.

New Zealand Dollar (NZD) supported by upbeat trade

Due to consistently bullish trade, the New Zealand Dollar (NZD) rose against safer assets, despite a lack of data.

The risk-on mood came after US-based chipmaker Nvidia posted bumper revenue for the fourth quarter of 2023, sparking a rally in global stock markets. This filtered through to the currency market, lifting the risk-sensitive ‘Kiwi’.

The New Zealand Dollar may see volatile trade today, as investors analyse the latest retail sales data for the fourth quarter of 2023.

Pound (GBP) wavers despite strong service sector growth

Yesterday, the Pound (GBP) traded in a mixed capacity, despite the latest PMI data printing in positive territory.

The UK’s service sector remained in growth during February, with the PMI beating forecasts. However, Sterling couldn’t sustain its initial upside and relinquished its gains against many of its peers.

This morning, Sterling could weaken if February’s GfK consumer confidence index remains deeply pessimistic as forecast.

Euro (EUR) muted amid mixed PMIs

Mixed private sector data pressured the Euro (EUR) during Thursday’s session. While the services PMI unexpectedly improved to 50, the manufacturing sector slipped deeper into contractionary territory.

Moreover, the European Central Bank’s (ECB) latest meeting minutes reaffirmed a shift towards interest rate cuts. The dovish tone prompted investors to bet on the ECB cutting rates sooner rather than later, undermining EUR.

Tonight, the latest German Ifo business climate index is due to print. Economists expect a slight improvement in February, which could support EUR exchange rates.

US Dollar (USD) recovers amid falling jobless claims

While the US Dollar (USD) began the day on poor footing amid upbeat trade, it managed to regain some ground over the session.

Between lower-than-expected jobless claims and modestly positive PMIs, the ‘Greenback’ clawed back its losses. However, bullish trade likely prevented it from climbing higher.

The US Dollar may trade in a muted capacity today, due to a lack of data releases. However, hawkish speeches from Federal Reserve officials could strengthen USD.

Canadian Dollar (CAD) listless as retail sales miss forecasts

The Canadian Dollar (CAD) traded sideways on Thursday, as a smaller-than-expected increase in Canadian retail sales undermined the ‘Loonie’.

Oil prices are likely to be the main driver of movement for the crude-linked Canadian Dollar today, amid a light data calendar.

Data Releases

Feb 23 10:00 GBP GfK Consumer Confidence (Feb)           -18

Feb 23 19:00 EUR DE Ifo Business Climate (Feb)                 85.5