Australian dollar (AUD) firms as markets rally
The Australian dollar (AUD) drifted higher yesterday as renewed hopes for an end to the conflict in the Middle East sparked an increase in risk appetite.
Markets were responding to comments from US President Donald Trump, who claimed the US will be out of Iran ‘pretty quickly’ and that Tehran had asked for a ceasefire.
Today, Australia’s latest trade figures could influence AUD. Could a recovery in exports lend the ‘Aussie’ some support?
New Zealand dollar (NZD) climbs amid risk-on mood
The New Zealand dollar (NZD) also strengthened yesterday as upbeat trade boosted demand for the risk-sensitive ‘kiwi’.
Market sentiment may remain the key focus for NZD investors today. If the mood remains positive, the New Zealand dollar could strengthen further.
Pound (GBP) mixed as markets digest policy signals
The pound (GBP) moved without a clear trajectory yesterday, amid comments from Prime Minister Keir Starmer and Bank of England (BoE) Governor Andrew Bailey.
Starmer indicated he wants deeper economic ties with the EU, which may have lent GBP support. However, Bailey pushed back on interest rate hike bets, which offset the upside.
Turning to today, Sterling could struggle for a clear direction once again amid a lack of UK economic data.
Euro (EUR) buoyed by USD weakness
The euro (EUR) managed to rise against its weaker rivals yesterday, with EUR enjoying its strong negative correlation with the falling US dollar (USD).
However, the safer single currency softened against some of its riskier rivals amid the risk-on market mood.
Eurozone data is thin on the ground today. As a result, we could see EUR driven by wider market trends.
US dollar (USD) slides amid Iran peace hopes
The safe-haven US dollar fell yesterday as hopes that the war in the Middle East could end soon saw investors favour riskier assets.
Better-than-forecast jobs and retail sales data may have helped cushion USD’s downside, although it wasn’t enough to see the currency recover.
President Trump will deliver a prime time speech today to update US citizens on the Iran war. If he repeats claims that the conflict could soon be over, the ‘greenback’ could stumble.
Canadian dollar (CAD) extends losses as oil falls further
The crude-linked Canadian dollar (CAD) fell sharply yesterday as oil prices tumbled in response to hopes the crisis in the Middle East may ease in the coming weeks.
While Canada’s latest trade figures could influence CAD in the session ahead, oil price movements may remain the key catalyst for the ‘loonie’.
Data releases
10:30 AUD Balance of Trade (Feb)
11:00 USD US President Trump Speech
22:30 CAD Balance of Trade (Feb)
22:30 USD Initial Jobless Claims (28/Mar)