Australian dollar (AUD) supported by strong Chinese trade data
The Australian dollar (AUD) strengthened against many of its rivals yesterday following upbeat Chinese trade data.
Owing to its nature as a Chinese proxy currency, AUD was boosted by news of rising exports in April.
The ‘Aussie’ may trim its gains today, as a lack of data could undermine AUD sentiment.
New Zealand dollar (NZD) flat amid lack of data
Yesterday saw the New Zealand dollar (NZD) tread water throughout the session, due to a lack of data releases.
This left the risk-sensitive currency exposed to a mixed market mood, which further capped its movements.
The ‘kiwi’ could endure volatile trade today, as markets react to this morning’s manufacturing PMI.
Pound (GBP) seesaws as markets digest BoE rate decision
The pound (GBP) fluctuated yesterday in the wake of the Bank of England’s (BoE) latest interest rate decision.
While the BoE kept rates unchanged as expected, commentary from BoE Governor Andrew Bailey induced volatility in GBP. Bailey stated that a June rate cut was ‘neither ruled out, nor a fait accompli’. Sterling fluctuated lower in response.
This afternoon, the pound may rally if the UK’s GDP data for the first quarter of 2024 shows a 0.4% expansion as forecast.
Euro (EUR) undermined by absence of data
Yesterday, the euro (EUR) wavered as an absence of data releases sapped sentiment towards it.
This left the safer euro exposed to shifts in risk appetite. With the mood in flux, EUR exchange rates largely remained muted.
Investor attention is likely to turn to the latest European Central Bank (ECB) monetary policy meeting accounts today. If they reaffirm the ECB’s dovish stance, the common currency could weaken.
US dollar (USD) stumbles as jobless claims rise
Thursday evening saw the US dollar (USD) weaken against its peers, following worse-than-expected jobless claims data.
Initial jobless claims printed significantly above forecasts yesterday, with 231,000 claims in the week ending 4 May. This indicated signs of slack in the US jobs market, which increased Federal Reserve rate cut bets and weakened USD.
Turning to today, the ‘greenback’ could continue to struggle later if consumer confidence edged lower in May.
Canadian dollar (CAD) muted despite improving oil prices
Yesterday, rising oil prices failed to support the Canadian dollar (CAD), due to a light data calendar.
Later tonight, the ‘loonie’ could slip if Canadian unemployment increased in April as forecast.
Data releases
May 10th 16:00 GBP GDP Growth Rate (Q1) 0.4%
May 10th 21:30 EUR ECB Monetary Policy Meeting Accounts
May 10th 22:30 CAD Unemployment Rate (Apr) 6.2%
May 11th 00:00 USD Michigan Consumer Sentiment (May) 76