Australian Dollar (AUD) slides as trading conditions worsen
While the Australian Dollar (AUD) began yesterday on firm footing, a souring market mood saw the risk-sensitive ‘Aussie’ tumble.
With investors eyeing safer assets later in the day, hawkish remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock failed to keep AUD afloat. Bullock stated that inflation remained ‘homegrown’, prompting speculation of further tightening.
This morning, the ‘Aussie’ could slip further if cooling consumer inflation expectations spark interest rate cut bets.
New Zealand Dollar (NZD) struggles amid bearish trade
As risk appetite waned over Thursday’s session, the New Zealand Dollar (NZD) lost out against safer peers.
Furthermore, a lack of domestic data releases served to limit the ‘Kiwi’ as investors turned attention elsewhere.
Today, NZD may see volatile trade as investors analyse New Zealand’s latest manufacturing PMI release.
Pound (GBP) in flux as risk appetite ebbs
On Thursday, the Pound (GBP) wavered against its peers due to shifting levels of risk appetite.
At the beginning of the day’s trade, risk-on trade allowed GBP to remain afloat despite a lack of data drivers. However, as the session progressed and the market mood faltered, GBP struggled against safer peers.
British data releases are set to remain scarce during today’s proceedings, which could leave the Pound directionless.
Euro (EUR) pressured by dovish ECB comments
Dovish commentary from European Central Bank (ECB) policymaker Yannis Stournaras stifled the Euro (EUR) yesterday.
Stournaras, one of the more dovish members, advocated for the ‘need’ to begin cutting interest rates soon. He outlined caution over holding an overly restrictive stance, reinforcing market bets of an April cut.
Owing to a short supply of data releases, the common currency could remain rangebound through today’s trade.
US Dollar (USD) rallies as producer prices accelerate
The US Dollar (USD) strengthened yesterday following the publication of a hotter-than-expected producer price index.
In February, PPI accelerated to 0.6%, which increased concerns over sticky inflation in the US. In turn, investors began to readjust their bets on Federal Reserve interest rate cuts, boosting USD.
Overnight, the latest consumer confidence data from the University of Michigan is due to print. Signs of a resilient outlook could continue USD’s rise.
Canadian Dollar (CAD) underpinned amid falling oil production forecasts
The crude-linked Canadian Dollar (CAD) was underpinned yesterday by news that oil production forecasts had been slashed, which caused prices to rally.
As macroeconomic releases remain thin on the ground, the ‘Loonie’ could struggle to find direction today.
Data Releases
Mar 15th 10:00 AUD Consumer Inflation Expectations (Mar) 4.4%
Mar 16th 00:00 USD Michigan Consumer Sentiment (Mar) 76.9