Australian Dollar (AUD) boosted by improving exports
Yesterday, the Australian Dollar (AUD) clambered higher following robust domestic and Chinese trade data.
Exports increased more than forecast for both countries, yielding tailwinds for the ‘Aussie’ due to its status as a Chinese proxy currency. Over the session, a risk-on market mood further boosted AUD exchange rates.
Owing to a lull in data releases, the ‘Aussie’ may struggle to find its footing over the course of today’s session.
New Zealand Dollar (NZD) lifted by strong Chinese trade
Much like its Australian counterpart, the New Zealand Dollar (NZD) strengthened yesterday due to strong Chinese economic data.
Both imports and exports from the economic superpower smashed forecasts from January to February. As China is a key trading partner for New Zealand, this boosted the ‘Kiwi’ against its peers.
Turning to today, a lack of domestic economic data could see the risk-sensitive New Zealand Dollar be driven by any shifts in the market mood.
Pound (GBP) restricted by Spring Budget analysis
On Thursday, the Pound (GBP) lacked clear direction due to an absence of impactful data releases.
This kept the focus on the ongoing analysis of UK Chancellor Jeremy Hunt’s Spring Budget. With the accompanying forecasts showing minimal improvement to economic growth, Sterling struggled to attract support.
With data releases few and far between today, Sterling could fail to find a clear trajectory once again. However, any further analysis of the Spring Budget may limit its appeal.
Euro (EUR) volatile as ECB lowers inflation forecasts
The Euro (EUR) endured volatile trade yesterday, in the wake of the European Central Bank’s (ECB) interest rate decision.
While the forward guidance and rates were kept unchanged, the ECB revised its inflation forecasts lower. Because of the ECB’s affirmation of a data-driven approach, this sparked speculation of a June rate cut, hampering EUR.
This evening, the latest German industrial production data is due for release. While an increase is expected, the data could follow yesterday’s factory orders report and show a sharp drop, which may undermine EUR exchange rates.
US Dollar (USD) hits one-month low amid bullish trade
Risk-on trading conditions weakened the US Dollar (USD) during yesterday’s session, alongside an unexpected increase in jobless claims.
Claims for the week ending 2 March printed at 217,000, which prompted concerns over the health of the US labour market. This, in tandem with cheery trade, weighed heavily on the safe-haven US Dollar.
Tonight, the latest non-farm payrolls figure is scheduled for publication, reflecting jobs created in February. Markets are expecting a drop from 323,000 to 200,000, which could see USD slump.
Canadian Dollar (CAD) oscillates as oil prices drop
The crude-linked Canadian Dollar (CAD) traded in a mixed capacity yesterday, as falling oil prices limited its upside.
Canada’s unemployment rate for February is due to release tonight. Economists anticipate an uptick compared to January’s levels, which could weaken CAD.
Data Releases
Mar 8th 17:00 EUR DE Industrial Production (Jan) 0.6%
Mar 8th 23:30 CAD Unemployment Rate (Feb) 5.8%
Mar 8th 23:30 USD Non farm payrolls (Feb) 200,000