Australian dollar (AUD) supported by neutral RBA minutes
On Tuesday, the Australian dollar (AUD) ticked upward following the publication of the Reserve Bank of Australia’s (RBA) meeting minutes.
The minutes showed that the RBA was remaining neutral regarding any further policy decisions. However, AUD trimmed its gains over the session amid an increasingly tentative market mood.
Turning to today’s session, a lack of impactful macroeconomic data could see the ‘Aussie’ trade on risk appetite.
New Zealand dollar (NZD) wobbles as market mood sours
Over Tuesday’s session, an increasingly downbeat market mood prompted the New Zealand dollar (NZD) to waver.
While hawkish remarks from Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr kept the ‘Kiwi’ afloat, a lull in other releases capped its movements.
During today’s session, NZD could remain adrift as the short supply of economic releases continues.
Pound (GBP) underpinned by surprise manufacturing growth
Yesterday, the pound (GBP) enjoyed some support following news that the UK’s manufacturing sector returned to growth.
March’s final PMI for the sector was revised higher to 50.3, marking the first expansion since July 2022. However, Sterling was unable to hold on to its gains as the increasingly risk-sensitive pound succumbed to a souring mood.
Due to a light data calendar, the pound may remain rangebound over the course of today’s trade.
Euro (EUR) rises despite soft German CPI
The euro (EUR) managed to firm against its weaker rivals yesterday despite a cooldown in German inflation.
A pullback in the US dollar (USD) aided the single currency, due to EUR’s negative correlation with USD. However, the soft CPI reading kept the euro in check against its stronger peers.
The Eurozone inflation rate for March is due to print tonight and is forecast to remain unchanged. This could prompt an upside in the euro by delaying existing European Central Bank (ECB) interest rate cut bets.
US dollar (USD) struggles despite above-forecast job openings
Although JOLTs job openings printed higher than forecast for February, the US dollar (USD) weakened during yesterday’s trade.
Due to a lower revision to the previous month’s reading, investors read the data as evidence of a slightly cooler US labour market.
Overnight, the latest ISM services PMI is due to print. Could an uptick in service sector activity lift the ‘greenback’ against its rivals?
Canadian dollar (CAD) slips alongside US dollar
The Canadian dollar (CAD) was unable to take advantage of rising oil prices yesterday, as its close ties to a falling US dollar weakened it.
March’s services PMI is due to print later tonight and is forecast to show improving activity in the sector. However, as it is likely to remain in contraction territory, CAD may trend lower.
Data releases
April 3rd 19:00 EUR Inflation Rate (Mar) 2.6%
April 3rd 22:15 USD ADP Employment Change (Mar) 148,000
April 3rd 23:30 CAD Services PMI (Mar) 47.2
April 4th 00:00 USD ISM Services PMI (Mar) 52.7