Australian dollar (AUD) slides as jobs growth contracts
The Australian dollar (AUD) fell sharply yesterday after Australia’s latest jobs report showed a shock contraction in employment growth last month.
The risk-sensitive currency then faced further losses in the evening, amid a souring market mood.
Amid a lack of domestic economic data today, risk sentiment could drive AUD movement. If markets remain risk averse, the ‘Aussie’ could fall further.
New Zealand dollar (NZD) falls despite upbeat GDP
The New Zealand dollar (NZD) also declined during yesterday’s gloomy session, despite New Zealand GDP exceeding forecasts and showing that the country came out of recession at the end of 2024.
Aside from this morning’s trade data, releases from New Zealand are in short supply today. Therefore, market risk dynamics could determine NZD’s direction once again.
Pound (GBP) mixed amid BoE uncertainty
The pound (GBP) was mixed yesterday as investors digested the Bank of England’s (BoE) interest rate decision.
Although the bank struck a slightly more hawkish tone than expected, huge uncertainty over the policy outlook left Sterling struggling to gain against stronger peers.
The Confederation of British Industry’s (CBI) latest industrial trends orders survey is out this evening. Signs that the UK manufacturing industry remains on the ropes could pressure GBP.
Euro (EUR) dented by USD correlation
The euro (EUR) slid against its stronger rivals yesterday as the currency suffered from its negative correlation with a recovering US dollar (USD).
In addition, fading hopes for a peace deal in Ukraine put pressure on EUR.
Overnight, the Eurozone’s latest consumer confidence indicator is due out. If trade war fears and Ukraine concerns weighed on consumer morale this month, EUR could stumble.
US dollar (USD) recovers amid risk-off mood
The US dollar started yesterday’s session on the back foot after the Federal Reserve cut its growth forecasts at its latest interest rate decision.
However, the ‘greenback’ was able to recover strongly as market risk aversion supported the safe-haven currency.
Later on, Fed policymaker John Williams will deliver a speech. Any indication that weaker US growth could see the bank accelerate its loosening cycle may weigh on USD.
Canadian dollar (CAD) boosted by rising oil prices
The crude-linked Canadian dollar (CAD) strengthened yesterday, with a rise in oil prices lifting the ‘loonie’.
Canada’s latest retail sales figures could impact the ‘loonie’ later today. If sales growth recovered in February, as expected, CAD could gain ground.
Data releases
07:45 NZD Balance of Trade (Feb)
21:00 GBP CBI Industrial Trends Orders (Mar)
22:30 CAD Retail Sales (Feb)
23:05 USD Fed Williams Speech
01:00 EUR Consumer Confidence (Mar)