Australian Dollar (AUD) rises amid optimistic market impulse
Last Friday, the Australian Dollar (AUD) saw some support as upbeat trade boosted the risk-sensitive currency.
Due to expectations of interest rate cuts from the Federal Reserve, trading conditions improved during the European session. However, a lack of domestic releases limited AUD’s upside.
Data looks set to remain scarce today, meaning the ‘Aussie’ may struggle to find a clear direction.
New Zealand Dollar (NZD) wavers higher amid upbeat trade
Despite upbeat trade, the New Zealand Dollar (NZD) struggled to press its advantage during Friday’s session, although it managed to rise against its weaker peers.
Data releases were few and far between, which likely stifled NZD’s potential.
Turning to today, a continued lack of domestic economic data could see the ‘Kiwi’ remain reliant on risk appetite.
Pound (GBP) catapulted by bullish market mood
On Friday, the Pound (GBP) climbed against most major peers as a positive mood lifted the increasingly risk-sensitive UK currency.
Additionally, markets began to expect the Bank of England (BoE) would begin to cut interest rates later than its peers. This brought additional support for GBP, allowing it to reach multi-month highs against some currencies.
If this week’s trading session begins in good spirits, Sterling could continue to climb against safer assets.
Euro (EUR) stumbles despite improving German industrial production
At the end of last week, the Euro (EUR) struggled for support despite better-than-expected German industrial data.
Signals from some European Central Bank (ECB) policymakers that they were considering an April rate cut seemed to undermine the positive German data.
Owing to a scarcity of data releases, EUR exchange rates could remain limited over the course of today’s trade.
US Dollar (USD) hits two-month low amid downbeat employment data
While February’s non-farm payrolls data printed above market expectations on Friday, the US Dollar (USD) cratered due to a surprise increase in unemployment.
This sparked further speculation that the Federal Reserve may begin cutting interest rates soon, due to growing slack in the labour market. Furthermore, these bets brightened the market mood, piling additional selling pressure on USD.
Risk appetite is likely to remain the predominant driver of movement for the ‘Greenback’ today. If conditions remain upbeat, the safe-haven currency may slip.
Canadian Dollar (CAD) weakens amid increasing unemployment
The Canadian Dollar (CAD) slumped last Friday, amid confirmation of increased unemployment in February as Canada’s jobless rate ticked up from 5.7% to 5.8%.
The commodity-linked ‘Loonie’ is likely to trade in line with oil price dynamics today. If crude prices rise, CAD may follow.