Australian dollar (AUD) limited by downbeat PMIs
The Australian dollar (AUD) initially managed to edge higher on Thursday amid an improving market mood, although downbeat PMI surveys capped AUD’s gains.
However, sentiment soured in the evening, leading to sharp losses for the risk-sensitive ‘Aussie’ during the European and US trading hours.
As this week’s session comes to an end, AUD data is in short supply. Therefore, the ‘Aussie’ may be primarily driven by the global market mood. Could risk aversion see the Australian dollar stumble?
New Zealand dollar (NZD) falls as budget fails to impress
The New Zealand dollar (NZD) softened on Thursday following the government’s 2025 budget, which included a downbeat growth outlook amid the recent disruption in global trade.
A slowdown in New Zealand retail sales growth in the first quarter could pressure the New Zealand dollar today. Elsewhere, market risk dynamics may influence NZD exchange rates.
Pound (GBP) recovers despite lukewarm data
The pound (GBP) stumbled at the start of yesterday’s European session after higher-than-forecast government borrowing raised fears of further tax hikes in the autumn.
Sterling managed to recover as the session progressed, thanks to a better-than-expected UK services PMI. Although the figures only marginally beat forecasts and showed that activity practically stalled, this was seemingly enough to lift the pound against its weaker peers.
The UK’s retail sales figures for April could impact the pound today. Will an expected slowing of sales growth stifle the currency’s potential?
Euro (EUR) undermined by downbeat PMIs
The euro (EUR) was mixed on Thursday, with the safer single currency rising against riskier rivals thanks to the souring market mood.
However, EUR slipped against its stronger counterparts after the Eurozone PMIs reported a surprise contraction in private sector activity this month.
Confirmation that the German economy returned to growth at the start of 2025 could support the euro today. Later on, a speech from European Central Bank (ECB) policymaker Philip Lane could affect EUR, with any dovish comments denting the common currency.
US dollar (USD) recovers amid strong PMIs
The US dollar (USD) was initially weaker yesterday amid concerns about the risks of stagflation in the US and an apparent stalling of trade talks.
However, the American currency was able to rally later in the session amid a souring market mood and stronger-than-expected S&P Global PMI results.
The ‘greenback’ ends the week with little data to go by, leaving USD exposed to concerns about the outlook for the American economy and any shifts in market risk appetite.
Canadian dollar (CAD) steady despite falling oil
The crude-linked Canadian dollar (CAD) showed some resilience yesterday, firming against weaker rivals despite a drop in oil prices and a sharper-than-expected decline in Canadian producer prices.
Looking ahead, Canada’s latest retail sales figures are the focus for CAD investors today. Could an expected decline in sales in April put pressure on the Canadian dollar?
Data releases
08:45 NZD Retail Sales (Q1)
16:00 EUR German GDP Growth Rate (Q1)
16:00 GBP Retail Sales (Apr)
18:30 EUR ECB Lane Speech
22:30 CAD Retail Sales (Apr)