Australian dollar (AUD) climbs on hawkish RBA remarks
The Australian dollar (AUD) raced higher on Wednesday, following remarks from Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser.
Warning about potential inflation risks facing the Australian economy, Hauser signalled that more interest rate hikes will be needed.
Australia’s latest jobs data may help to underpin the ‘Aussie’ today if another healthy rise in employment growth reinforces bets for further interest rate hikes from the Reserve Bank of Australia (RBA).
New Zealand dollar (NZD) buoyed by risk-on flows
After a slow start to the session, the New Zealand dollar (NZD) eventually drifted higher yesterday amid an uptick in market risk sentiment.
In addition to the war in the Middle East, market sentiment may also be influenced by China’s latest GDP figures today. Will an expected acceleration of growth help to boost the ‘kiwi’?
Pound (GBP) muted amid BoE repricing
The pound (GBP) was subdued through yesterday’s session amid a reversal of recent interest rate expectations.
GBP investors are again only pricing a single rate 25bps rate hike this year, after briefly betting the BoE could tighten as much as 50bps earlier this week.
The publication of the UK’s latest GDP figures could drag on the pound today, if growth remained anemic even before the start of the war in the Middle East.
Euro (EUR) buoyed by positive data
The euro (EUR) traded with modest support on Wednesday in response to positive Eurozone economic data.
Industrial production in the bloc reportedly accelerated by 0.4% in February, up from -0.8% in January and beating forecasts for a 0.3% expansion.
Eurozone economic releases are in short supply today, which may leave the euro to trade without strong directional bias.
US dollar (USD) subdued amid de-escalation trade
The US dollar struggled to attract support yesterday as safe-haven demand continued to be buffeted by hopes for peace in the Middle East.
Speaking to Fox News on Wednesday, US President Donald Trump claimed the war is ‘close to over’ and hinted at further peace talks to take place in the coming days.
Coming up, the latest US industrial production figures could dampen USD demand today if they report a decline in production last month.
Canadian dollar (CAD) firms as oil prices tick up
The Canadian dollar (CAD) ticked higher on Wednesday, supported by a modest upswing in oil prices.
In the continued absence of any CAD data of note, movement in the ‘loonie’ will continue to be dictated by oil price movements today.
Data Releases
11:30 AUD Unemployment Rate (Mar)
04:00 GBP GDP (Feb)
23:15 USD Industrial Production (Mar)