Australian dollar (AUD) struggles despite upbeat PMI print
The Australian dollar (AUD) was placed on the defensive yesterday as ongoing geopolitical uncertainty continued to undermine market risk appetite.
The risk-off mood overshadowed the release of Australia’s latest PMIs, which may have otherwise helped the ‘Aussie’ firm after reporting the private sector returned to growth this month, albeit at a very modest pace.
In the absence of any notable Australian economic releases, AUD exchange rates are likely to continue to be influenced by wider market trends today.
New Zealand dollar (NZD) slides in cautious trade
The New Zealand dollar (NZD) faced notable pressure on Thursday as souring risk sentiment saw investors shun the high-yield currency.
Expect the ‘kiwi’ to extend these losses through today’s session if the cautious mood persists.
Pound (GBP) underpinned by upbeat PMIs
The pound (GBP) trended broadly higher through yesterday’s session as the UK’s latest PMIs surprised to the upside, suggesting activity in the private sector actually picked up in April, despite the disruption caused by the war in the Middle East.
However, the gains remain modest as the surveys also highlighted a worrying fall in business optimism and a startling rise in service sector costs over the past month.
Today sees the release of the UK’s latest retail sales figures, which may extend additional support to Sterling if sales growth rebounds as forecast last month.
Euro (EUR) slides as Eurozone private sector shrinks
The euro (EUR) stumbled on Thursday as the Eurozone’s latest PMIs reported a larger-than-expected decline in private sector growth.
The energy price crisis resulted in activity across the bloc falling to its worst levels since November 2024, raising fresh questions about whether the Eurozone economy can withstand a rate hike from the European Central Bank (ECB).
Germany’s latest IFO business climate index could fuel further losses for the euro today if April’s survey reports morale continued to decline this month.
US dollar (USD) firms amid Strait of Hormuz deadlock
The US dollar (USD) strengthened against most of its peers yesterday as the cautious market mood continued to funnel investors towards the safe-haven currency.
Sentiment continued to deteriorate amid concerns over the stalemate in the Strait of Hormuz, which remains a key sticking point in diplomatic efforts between the US and Iran.
Expect events in the Middle East to continue to drive movement in USD exchange rates today, with the US dollar potentially extending its gains if tensions continue to simmer.
Canadian dollar (CAD) buoyed by rising oil prices
The Canadian dollar (CAD) trended broadly higher on Thursday as Brent crude climbed back above $100 a barrel for the first time in two weeks.
Coming up, Canada’s latest retail sales data could act as a headwind for the ‘loonie’ today, if it reports sales growth slowed through March.
Data Releases
16:00 GBP Retail Sales (Mar)
18:00 EUR German IFO Business Climate (Apr)
22:30 CAD Retail Sales (Mar)