Australian dollar (AUD) fluctuates amid mixed market mood
The Australian dollar (AUD) faced setbacks yesterday, stumbling through the Asian trading session as fears of a fresh escalation of tensions in the Middle East weighed on market risk appetite.
AUD then rallied overnight, supported by a rebound in market sentiment and a weaker US dollar (USD).
The publication of Australia’s latest producer price index may lift the ‘Aussie’ this morning as rising factory gate prices will further boost domestic inflation expectations.
New Zealand dollar (NZD) dented by business confidence slump
The New Zealand dollar (NZD) faced headwinds on Thursday, after data showed a sharp drop in New Zealand business confidence last month.
An absence of domestic data is likely to leave the ‘kiwi’ to track market risk dynamics today.
Pound (GBP) subdued following BoE rate decision
The pound (GBP) was muted yesterday, as the Bank of England (BoE) struck a cautious tone following its latest interest rate decision.
In addition to keeping rates unchanged, the bank struck a cautious tone, signalling it favoured a wait-and-see approach to policy amid the uncertainty posed by the conflict in the Middle East.
BoE Chief Economist Huw Pill is scheduled to speak later today. As the one dissenting voice who called for a rate hike yesterday, could his comments prove supportive of the pound?
Euro (EUR) dented by weak GDP print
The euro (EUR) initially stumbled on Thursday as the Eurozone’s latest GDP figures reported an unexpected slowdown of growth in the first quarter.
EUR sentiment then remained suppressed as the European Central Bank (ECB) left interest rates on hold.
Eurozone economic releases are in short supply today, which may leave the euro to trade without strong directional bias today.
US dollar (USD) undermined by US GDP miss
The US dollar traded in a wide range yesterday, initially climbing on reports that the US is weighing up its military options against Iran.
USD exchange rates then fell back later in the session, as market jitters eased and the US published a softer-than-expected first-quarter GDP print.
Coming up, the US dollar may close the week on a positive note if the latest ISM manufacturing PMI reports growth in the US factory sector continued to accelerate through April.
Canadian dollar (CAD) buoyed by higher oil prices
The commodity-sensitive Canadian dollar (CAD) fluctuated on Thursday as global oil prices jumped to a new four-year high, before swiftly retreating again.
Expect the ‘loonie’ to continue to track oil price movement through the remainder of this week’s session.
Data Releases
11:30 AUD PPI (Q1)
22:15 GBP BoE Pill Speech
00:00 USD ISM Manufacturing PMI (Apr)