Australian Dollar (AUD) drops amid downbeat trade
The end of last week saw the Australian Dollar (AUD) struggle to attract support, as a worrying Chinese economic outlook scuppered the market mood.
The People’s Bank of China (PBoC) left its key policy rate unchanged, despite signs of waning demand for loans. This cautious approach to stimulus measures from the bank weighing on the ‘Aussie’, which trades as a proxy for the Chinese economy.
Later this morning, the Australian Dollar could continue weakening if cooling consumer inflation expectations spark interest rate cut bets.
New Zealand Dollar (NZD) struggles as market mood shifts
As risk appetite fluctuated last Friday, the New Zealand Dollar (NZD) lost out against safer peers.
This negated signs of improving activity in New Zealand’s private sector. While it remained in contraction, the manufacturing PMI for February beat forecasts, printing at 49.3.
Today, NZD may see volatile trade as investors consider the latest services PSI, reflecting sector activity in February.
Pound (GBP) dulled amid data drought
The Pound (GBP) ended last week’s session quietly, as an ongoing lull in data releases continued to limit its movements.
Choppy trading conditions further undermined Sterling, with the increasingly risk-sensitive currency hampered by a shifting market mood.
GBP looks set to begin this week on another muted note, due to a short supply of domestic data releases.
Euro (EUR) tempered by dovish ECB comments
Despite dovish comments from European Central Bank (ECB) Chief Economist Philip Lane, the Euro (EUR) ended last week on steady ground.
As a safer currency, EUR was able to shrug off Lane’s comments of an easing labour market amid a bearish mood. However, this further affirmed the likelihood of an imminent rate cut from the ECB, capping the single currency’s gains.
The Eurozone’s latest trade data is due to release tonight, and could strengthen the Euro if the surplus increased in January as expected.
US Dollar (USD) relinquishes gains as consumer sentiment slips
While sombre trade kept the US Dollar (USD) underpinned against riskier peers last Friday, disappointing consumer confidence data limited its appeal elsewhere.
US consumer sentiment unexpectedly ticked lower in March, as American households grew less optimistic about the domestic economic outlook.
With data releases being few and far between today, the ‘Greenback’ may trade on market risk dynamics.
Canadian Dollar (CAD) capped as oil prices drop
The crude-linked Canadian Dollar (CAD) saw its gains limited last Friday as oil prices began to fall.
Tonight, the latest Canadian producer price index is due to print. With PPI expected to have accelerated in February, the ‘Loonie’ may strengthen.
Data Releases
Mar 18th 10:00 AUD Consumer Inflation Expectations (Mar) 4.4%
Mar 18th 20:00 EUR Balance of Trade (Jan) €20bn
Mar 18th 20:00 EUR Inflation Rate (Feb) 2.6%
Mar 18th 22:30 CAD PPI (Feb) 0.3%