Australian dollar (AUD) listless amid lack of data
Muted trade struck the Australian dollar (AUD) last Friday, amid a lack of domestic data releases.
This left the ‘Aussie’ to be undermined by falling coal prices, one of Australia’s key exports, which kept the currency flat against its peers.
This morning, Australia’s latest business confidence data is due to print. Could an increase lift AUD?
New Zealand dollar (NZD) softens amid consistent manufacturing weakness
The end of last week saw the New Zealand dollar (NZD) weaken following confirmation of continued weakness in New Zealand’s manufacturing sector.
Despite the latest PMI survey printing above forecasts, it pointed to the 14th consecutive contraction in factory activity, which weighed on NZD.
The ‘kiwi’ could weaken further today, as markets continue to analyse the latest services PSI for April.
Pound (GBP) muted despite forecast-smashing GDP data
The pound (GBP) initially strengthened at the start of last Friday’s European session, after new data revealed a stronger-than-expected recovery in the UK economy in the first quarter of 2024.
However, the news was undercut by analysis that suggested a low-growth outlook for the country. Sterling later surrendered its earlier gains.
Tepid trade is likely to remain the pound’s default today, as UK data releases taper off.
Euro (EUR) stifled by dovish ECB minutes
Friday saw the euro (EUR) remain flat against most of its peers, following dovish meeting minutes from the European Central Bank (ECB).
The minutes highlighted that the ECB agreed that an interest rate cut in June could be on the cards if inflation continues to cool. This prevented EUR from finding its footing during the session, amid increased bets on a June cut from investors.
Eurozone data releases are in short supply today, which may keep the euro listless over the session.
US dollar (USD) subdued as consumer confidence declines
The US dollar (USD) ended the week on uncertain footing, following the release of the latest US consumer confidence index.
In April, American household morale fell far more than expected, with the reading slumping to its lowest level in six months. Signs of diminishing confidence and spending sapped sentiment towards USD.
Tonight, two Federal Reserve officials are scheduled to speak. If they strike a dovish tone, USD could stumble.
Canadian dollar (CAD) rises as unemployment holds steady
Last Friday, the Canadian dollar (CAD) rose against its peers as Canada’s unemployment rate for April remained at 6.1%, rather than rising as expected.
Today, if oil prices continue their recent climb, the crude-sensitive ‘loonie’ may maintain its strength.
Data releases
May 13th 11:30 AUD NAB Business Confidence (Apr) 2
May 13th 23:00 USD Fed Jefferson Speech
May 13th 23:00 USD Fed Mester Speech