Australian dollar (AUD) climbs as market mood improves
The Australian dollar (AUD) strengthened against many of its rivals yesterday as a risk-on mood swept markets.
However, disappointing trade data limited AUD’s upside. Australia’s trade surplus narrowed, indicating weakening trade in March.
The ‘Aussie’ may trade sideways today, as investors deliberate over the final services PMI reading for April.
New Zealand dollar (NZD) trims gains amid dearth of data
Yesterday, a light data calendar prompted the New Zealand dollar (NZD) to trade in line with market dynamics.
Initially, a bullish market impulse lifted the ‘kiwi’. However, NZD relinquished its gains against stronger peers later in the session.
NZD may continue to trade in a muted capacity today, as the lack of data continues.
Pound (GBP) undermined by bleak economic forecasts
The pound (GBP) came under pressure on Thursday, amid a downbeat slate of economic forecasts from the OECD.
The organisation warned that economic expansion in the UK would be weaker than expected in 2024, with the OECD anticipating 0.4% growth. Similarly, it projected that the UK would see the slowest level of growth across all G7 territories in 2025.
This evening, the pound may gather some support if April’s final services PMI confirms continued expansion in the sector.
Euro (EUR) slides amid continued manufacturing weakness
Yesterday, the euro (EUR) weakened against most peers in the wake of downbeat economic data releases.
The finalised manufacturing PMI for April confirmed a contraction in the sector, reiterating continued weakness. This, in tandem with a recovering US dollar (USD), weighed heavily on EUR.
Today, if the Eurozone’s unemployment rate held near a record low of 6.5% in March, the euro could recover its losses.
US dollar (USD) recovers amid signs of tight labour market
Thursday saw the US dollar (USD) recover after an initial slump in the wake of the Federal Reserve’s dovish interest rate decision.
Initial jobless claims and challenger job cuts printed below forecasts yesterday, indicating a healthy labour market. This prompted USD to recoup some losses following a surprisingly neutral tone from the Fed.
Turning to today, the ‘greenback’ may once again weaken if April’s non-farm payrolls shows a drop in jobs as forecast.
Canadian dollar (CAD) wobbles as trade data disappoints
The Canadian dollar (CAD) saw mixed movement yesterday, as rising oil prices offset a surprise deficit in Canada’s latest balance of trade report.
Today, the ‘loonie’ may soften if the Canadian services sector remained in contraction as expected.