Australian dollar (AUD) slips amid falling exports
The end of last week saw the Australian dollar (AUD) weaken as Australian export levels were found to have fallen in February.
Exports fell by 2.2% on a monthly basis, leading the Australian trade surplus to narrow sharply. As trade makes up a notable portion of Australia’s economy, AUD slipped against its peers.
Turning to today’s session, a lack of impactful macroeconomic data could see the ‘Aussie’ begin the week on a quiet note. Any shifts in market mood could influence the risk-sensitive Australian dollar.
New Zealand dollar (NZD) wanes amid data drought
The New Zealand dollar (NZD) softened during Friday’s session, as a lack of domestic data tempered its appeal.
Furthermore, the risk-sensitive ‘Kiwi’ was affected by a sour market mood over the course of the day’s trade. With markets reining in bets on interest rate cuts from the Federal Reserve, investors remained nervous.
During today’s session NZD could continue trading at the behest of the market mood, as data releases remain few and far between.
Pound (GBP) wavers amid lack of data
The pound (GBP) continued to trade without a clear direction against its peers at the end of last week’s session.
A short supply of UK data continued, leaving Sterling trading in a wide range against its peers.
With British economic data set to remain thin on the ground today, the pound may continue to endure listless trade.
Euro (EUR) pressured by downbeat data
Last Friday the euro (EUR) endured selling pressure, amid a duo of disappointing economic data releases.
Firstly, German factory orders in February improved less than expected, indicating signs of weak activity. Then, weaker-than-forecast Eurozone retail sales data for February applied additional pressure to EUR.
Looking ahead, the latest German trade data is due to print this afternoon. With the bloc’s largest economy expected to see a shrinking trade surplus, EUR may soften.
US dollar (USD) rallies on red-hot employment data
The latest non-farm payrolls report printed significantly above expectations last Friday, propelling the US dollar (USD) skyward.
In March, the US private sector added 303,000 jobs, significantly above the 200,000 expected by economists. By showing strong employment levels, investors considered that the Federal Reserve had further room to keep interest rates unchanged, bringing strength to USD.
Risk appetite is likely to drive the ‘greenback’ today amid a lack of US data. If a bearish mood prevails, USD may rise further on the back of safe-haven flows.
Canadian dollar (CAD) slumps as unemployment rises
The Canadian dollar (CAD) sank last Friday, amid a larger-than-expected rise in unemployment. March’s jobless rate rose to 6.1% from 5.8%, sparking concerns over Canada’s employment levels.
Oil prices are likely to drive the ‘loonie’ over today’s session. If prices climb, the crude-linked currency may gain ground.
Data releases
April 8th 16:00 EUR German Balance of Trade (Feb) €26bn
April 8th 16:00 EUR German Industrial Production (Feb) 0.3%