Australian dollar (AUD) pressured by slowing growth
The risk-sensitive Australian dollar (AUD) initially faltered on Wednesday morning following weaker-than-forecast domestic GDP data and a downbeat market mood.
However, a stronger-than-forecast Australian services PMI coupled with signs of growth in the Chinese services sector cushioned AUD losses amid improving market sentiment.
Looking ahead, a speech by Reserve Bank of Australia (RBA) Governor Michelle Bullock could impact the ‘Aussie’ tomorrow. Should Bullock signal that the bank remains open to further interest rate hikes this month, the Australian dollar may strengthen.
New Zealand dollar (NZD) supported by improving market mood
The acutely risk-sensitive New Zealand dollar (NZD) edged higher on Wednesday as market sentiment improved through the European trading session.
Coming up, a data-light session could leave the ‘kiwi’ vulnerable to global risk dynamics once again today.
Pound (GBP) supported by services uptick
The pound (GBP) edged higher on Wednesday evening following the release of the finalised UK services PMI.
The index surpassed forecasts in August rising to 53.7, signalling an ongoing acceleration in British services sector activity.
This evening, a lack of high-impact UK data could see GBP trade without a clear trajectory.
Euro (EUR) wavers despite rising producer prices
The euro (EUR) was largely subdued on Wednesday following the publication of the Eurozone’s latest producer price index.
Despite an uptick in the bloc’s producer prices in July, the safe-haven single currency struggled to garner investor interest amid an increasing appetite for risk.
This evening, Germany’s latest factory orders data is due for release. Could declining manufacturers orders weigh on EUR exchange rates overnight? Investors may also look to the Eurozone’s latest retail data, with a forecast uptick in sales last month likely to limit EUR’s losses.
US dollar (USD) stumbles amid US employment concerns
The US dollar (USD) tanked against its peers on Wednesday night as the latest JOLTs job openings report fell significantly below forecasts in July.
Additionally, a sharp downward revision to June’s release served to further fuel concerns of a deteriorating US labour market, thereby sapping appeal for the ‘greenback’.
Today, the latest US initial jobless claims report is due for release in the US. Could further signs of weakening US employment hamper USD exchange rates?
Canadian dollar (CAD) stymied by BoC rate reduction
The Canadian dollar (CAD) faced headwinds on Wednesday night as the Bank of Canada (BoC) delivered a widely expected interest rate cut.
Tonight, Canada’s latest services PMI is due for release. Should the index print in contraction territory for another successive month, the ‘loonie’ could remain on the backfoot.
Data releases
5th Sep 12:00 AUD RBA Bullock Speech
5th Sep 16:00 EUR German Factory Orders (Jul) -1.5%
5th Sep 19:00 EUR Retail Sales (Jul) 0.1%
5th Sep 22:30 USD Initial Jobless Claims (Aug/31) 230,000
5th Sep 23:30 CAD Services PMI (Aug) 47.8