Australian dollar (AUD) weighed down by sluggish manufacturing data
On Wednesday, a downward revision to April’s manufacturing PMI undermined the Australian dollar (AUD).
Although the sector still showed signs of improving, its finalised figure was revised lower for the month, as activity remained sluggish. As the day progressed, improved trading conditions lifted AUD against safer peers.
The ‘Aussie’ could continue to recover this morning, if March’s trade data improved as forecast.
New Zealand dollar (NZD) recoups unemployment-related losses
Wednesday saw the New Zealand dollar (NZD) sink against its peers after domestic unemployment rose from 4% to 4.3% in the first quarter.
However, as the market mood brightened over the day’s trade, NZD managed to recoup its losses against safer assets.
The ‘kiwi’ may trade in a consolidatory mode today, amid a lack of impactful economic data.
Pound (GBP) subdued by confirmation of manufacturing contraction
The pound (GBP) lacked clear direction on Wednesday, despite an upward revision to April’s manufacturing PMI.
Although the sector contracted less than expected last month, confirmation of weakness capped GBP’s movements.
With data releases few and far between today, the pound is unlikely to attract much support from investors.
Euro (EUR) directionless amid Labour Day closures
Yesterday, the euro (EUR) traded sideways against most peers as markets closed in observance of Labour Day.
As this resulted in thin trading conditions, the common currency traded in tandem with market dynamics.
Looking ahead, the Eurozone’s final manufacturing PMI could impact EUR this evening. Will a deepening contraction in factory activity weigh on the euro?
US dollar (USD) struggles amid downbeat economic data
On Wednesday, the US dollar (USD) came under pressure in the wake of disappointing economic data.
The latest ISM manufacturing PMI pointed to a contraction in the sector in April, while the latest JOLTs job openings printed below forecasts. Amid signs of slowing economic activity and labour market slack, USD struggled against some peers.
Today, the ‘greenback’ may see volatile trade as investors continue to analyse the latest interest rate decision from the Federal Reserve.
Canadian dollar (CAD) slides as retail sales fall
Owing to falling oil prices, the crude-sensitive Canadian dollar (CAD) struggled to find its footing during yesterday’s trade.
Today, the ‘loonie’ may strengthen if Canada’s trade surplus expanded in March as economists forecast.