Australian dollar (AUD) wavers despite positive trade data
The Australian dollar (AUD) was mixed yesterday, with a larger-than-expected trade surplus for January initially helping to support the ‘Aussie’.
This upside was stifled, however, by ongoing fears of a global trade war following the implementation of new US tariffs earlier in the week.
With AUD data absent from the calendar today, market risk dynamics could drive the Australian dollar.
New Zealand dollar (NZD) firms alongside commodity prices
The New Zealand dollar (NZD) managed to tick higher yesterday, with the commodity-linked ‘kiwi’ supported by rising dairy prices.
There’s no New Zealand economic data due out today, with the risk-sensitive ‘kiwi’ potentially being driven by the market mood.
Pound (GBP) slides amid lack of support
The pound (GBP) fell against many of its rivals yesterday, as a lack of UK data left the currency vulnerable to profit-taking.
Furthermore, a gloomy market mood put some pressure on the risk-sensitive pound.
Sterling ends the week with UK data still thin on the ground. Therefore, the pound may trade without a clear direction today.
Euro (EUR) boosted by ECB decision
The euro (EUR) strengthened yesterday, building on this week’s impressive gains, as the European Central Bank (ECB) struck a more hawkish tone than expected at its policy announcement.
Although the ECB cut interest rates by 25bps, as expected, the bank’s accompanying statement suggested that future rate cuts could come at a slower pace.
This evening, ECB President Christine Lagarde is due to speak. If she reiterates the bank’s slightly more cautious outlook on future rate cuts, EUR could strengthen.
US dollar (USD) subdued ahead of payrolls data
The US dollar (USD) traded in a narrow range yesterday with investors awaiting today’s US jobs data.
This muted tone left USD to waver near multi-month lows, following this week’s steep losses amid US recession fears.