Australian dollar (AUD) falls amid rising unemployment
On Thursday, the Australian dollar (AUD) dropped in the wake of a rise in unemployment.
In April, Australian unemployment leapt to 4.1%, up from 3.9%. As this demonstrated growing slack in the domestic labour market, diminished bets on hawkish action from the Reserve Bank of Australia (RBA) dented AUD.
With Australian data hard to come by today, the ‘Aussie’ may struggle to attract support from investors over the session.
New Zealand dollar (NZD) pressured by deteriorating market mood
Over the course of Thursday’s session, the New Zealand dollar (NZD) weakened due to a souring market mood.
With little in the way of cushioning data, the risk-sensitive ‘kiwi’ fell against most major peers.
Market sentiment could continue to drive NZD exchange rates today, as the lull in impactful data continues.
Pound (GBP) undermined by dovish BoE remarks
While the pound (GBP) rose against riskier assets on Thursday, dovish communication from the Bank of England (BoE) limited its appeal.
Sarah Greene, a BoE policymaker, commented that inflation persistence had continued to wane since she joined the Monetary Policy Committee. This prompted an increase in BoE interest rate cut bets, which stifled Sterling.
GBP exchange rates could recover this evening, if BoE policymaker Catherine Mann delivers a convincingly hawkish speech. Conversely, any dovish comments could dent the pound.
Euro (EUR) wobbles amid light data calendar
Thursday saw the euro (EUR) trade in a mixed capacity, due to an absence of domestic data releases.
Furthermore, towards the tail end of the European session, a rising US dollar (USD) piled additional pressure on EUR. As the currencies share a negative correlation, the euro struggled to find support.
This evening, the euro could weaken against its peers if European Central Bank (ECB) Vice-President Luis de Guindos delivers dovish remarks.
US dollar (USD) rises as jobless claims fall
The US dollar began to climb on Thursday, following softer-than-expected initial jobless claims for the week ending 4 May.
In addition, a risk-off market mood and slight uptick in US Treasury yields lent USD further support.
Later tonight, Federal Reserve official Christopher Waller is due to deliver a speech. If he takes a hawkish stance, USD could strengthen further against its peers.
Canadian dollar (CAD) listless amid lack of data
Despite oil prices firming yesterday, the Canadian dollar (CAD) traded in a narrow range amid an absence of economic data.
Turning to today, a continued lack of data may leave the ‘loonie’ to trade in line with oil prices. If they continue to waver, CAD may struggle.
Data releases
May 17th 17:20 EUR ECB de Guindos Speech
May 17th 18:00 GBP BoE Mann Speech
May 17th 19:00 EUR Inflation Rate Final (Apr) 2.4%
May 18th 00:15 USD Fed Waller Speech