Australian dollar (AUD) volatile in wake of RBA decision
The Australian dollar (AUD) initially fell yesterday, despite an interest rate increase from the Reserve Bank of Australia (RBA), as a risk-off mood and warnings about Australia’s economic outlook weighed on AUD.
However, the ‘Aussie’ managed to regain the upside in the evening thanks to an improving market mood.
The latest Ai Group industry index could reflect negatively on the ‘Aussie’ today. Forecasters expect the indicator to have slipped to an 18-month low in April.
New Zealand dollar (NZD) firms as risk appetite rebounds
The New Zealand dollar (NZD) softened slightly yesterday before pushing higher later in the session as risk appetite improved.
New Zealand’s unemployment rate is the focus for NZD investors today. Another quarter of high unemployment could weigh on the ‘kiwi’.
Pound (GBP) finds support against safer peers
The pound (GBP) was mixed yesterday as a lack of UK economic data left Sterling without a clear trajectory.
That said, the increasingly risk-sensitive currency was able to tick higher against some of its safer peers.
Sterling could attract support today, if the UK’s final services PMI confirms an acceleration in activity in April. However, the looming local election could mute movement.
Euro (EUR) uncertain in absence of data
The euro (EUR) traded in a wide range yesterday, with the common currency rudderless amid an absence of Eurozone economic data.
Overall, this saw the safer euro soften against riskier rivals amid the improving market mood.
The Eurozone’s own PMI results could pressure EUR today, if they confirm that private-sector activity in the bloc contracted last month.
US dollar (USD) pulls back as mood improves
The US dollar (USD) initially edged higher yesterday as flaring tensions in the Middle East provided USD with safe-haven flows.
However, market sentiment recovered in the evening, forcing the ‘greenback’ to retreat. A softer US services PMI and a drop in job openings also placed some pressure on the American dollar.
The latest ADP employment change figure could influence USD today. Could a soft reading subdue the ‘greenback’?
Canadian dollar (CAD) weakens despite forecast-beating PMI
The crude-linked Canadian dollar (CAD) slipped yesterday evening as oil prices trended lower. A better-than-forecast Canadian PMI failed to lift the ‘loonie’.
Looking ahead, Canada’s Ivey PMI could weigh on the Canadian dollar overnight, if it points to another month of contracting activity in April.
Data releases
08:45 NZD Unemployment Rate (Q1)
09:00 AUD Ai Group Industry Index (Apr)
18:00 EUR Composite PMI (Apr)
18:30 GBP Services PMI (Apr)
22:15 USD ADP Employment Change (Apr)
00:00 CAD Ivey PMI s.a (Apr)