Australian dollar (AUD) slips amid souring mood
The Australian dollar (AUD) stumbled at the end of last week as a souring market mood put pressure on the risk-sensitive ‘Aussie’.
With tensions rising in the Middle East and the Federal Reserve likely to keep interest rates higher for longer, anxious investors opted for safer currencies.
Today, Australian economic data is thin on the ground, which could leave the currency to trade on market risk appetite once again.
New Zealand dollar (NZD) dragged lower by contracting factory activity
The New Zealand dollar (NZD) declined on Friday after the latest manufacturing PMI showed a deterioration in New Zealand factory activity.
Forecasters had expected activity to stall in March, after 12 months of contraction. Instead, activity shrank for a 13th month, and the pace of contraction increased.
The ‘kiwi’ kicks off this week’s session with a lack of data releases. As a result, the market mood could drive the risk-sensitive currency.
Pound (GBP) fluctuates following UK GDP
The pound (GBP) traded in a wide range on Friday following mixed UK GDP results.
Although January’s GDP was revised up from 0.2% to 0.3%, UK economic growth slowed to 0.1% in February. This raised concerns about the fragility of the British economy.
Looking ahead, Bank of England (BoE) Deputy Governor Sarah Breeden is due to speak tonight. Any hints about the bank’s policy plans could impact the pound.
Euro (EUR) subdued in wake of ECB decision
The euro (EUR) initially faced pressure during Friday’s European session as the European Central Bank’s (ECB) dovish commentary at its policy decision on Thursday continued to weigh on the currency.
However, the safer euro was able to regain ground against its riskier peers during the US trading hours amid a bearish market mood.
This evening, the Eurozone’s latest industrial production figure could lend EUR some support. Economists expect output to have recovered in February.
US dollar (USD) hits new five-month high
The US dollar (USD) hit a fresh five-month high on Friday, enjoying its strongest week in over a year, as markets continued to scale back bets on Federal Reserve interest rate cuts.
In addition, a risk-off market mood boosted the safe-haven ‘greenback’. Investors grew increasingly anxious about the possibility of a direct conflict between Israel and Iran.
Turning to today, the latest US retail sales data is in focus. Could a slowdown in sales growth in March put pressure on USD?
Canadian dollar (CAD) buoyed by rising oil prices
The crude-linked Canadian dollar (CAD) rose against most of its rivals on Friday as crude prices climbed, pulling CAD higher with them.
Oil prices could continue driving the ‘loonie’ today amid a lack of Canadian data. If crude extends its upside, CAD could too.
Data Releases
Apr 15th 19:00 EUR Industrial Production (Feb) 1.1%
Apr 15th 21:15 GBP BoE Breeden Speech
Apr 15th 22:30 USD Retail Sales (Mar) 0.3%