Australian Dollar (AUD) Mixed as Market Mood Wavers
The Australian Dollar (AUD) lost some support midweek, as risk sentiment fluctuated on a lack of progress in Ukraine.
While continually rising commodity prices capped significant losses, the ‘Aussie’ was subdued as Russian forces in Ukraine effectively blocked off the city of Mariupol, denying access to a humanitarian convoy.
Into today, Australian PMI data may influence AUD trading – if manufacturing and service-sector activity fall as predicted, the Australian Dollar could tumble further.
New Zealand Dollar (NZD) Trends Down on Risk Aversion, Lack of Data
The New Zealand Dollar (NZD) slid through Wednesday’s session, as a lack of data exposed the currency to losses.
Risk flows dampened ‘Kiwi’ support as the situation in Ukraine remained fraught, while comparative AUD weakness also weighed on NZD.
A further lack of data leaves the New Zealand Dollar to trade on external factors today: if progress is made towards achieving a ceasefire in Ukraine, the ‘Kiwi’ could climb on risk-on tailwinds.
Pound (GBP) Falls Following Spring Budget Release
The Pound (GBP) tumbled yesterday, as UK Chancellor Rishi Sunak disappointed markets with his Spring statement.
Markets were unimpressed as the Office for Budget Responsibility remarked that even after new budget measures, households would still see a dramatic fall in living standards.
High inflation did little to buoy GBP either, as the Bank of England (BoE) has recently refused to commit to further policy tightening.
UK PMI data could affect Sterling today – if UK productivity fell in March as expected, the Pound may drop lower still.
Euro (EUR) Sinks on US Dollar Strength
The Euro (EUR) came under pressure midweek, as risk-off trading supressed EUR appeal while USD strength exerted further downside.
Losses were capped by expectations that the European Central Bank (ECB) will hike interest rates before the end of 2022; but downside was then exacerbated by weaker-than-expected consumer confidence, which fell to -18.7 in March.
PMI data for both Germany and the Eurozone is likely to affect the single currency today: if both datasets tumble, the Euro will likely fall further.
US Dollar (USD) Buoyed by Risk Aversion, Hawkish Fed
The US Dollar (USD) strengthened on Wednesday as a risk-off mood drew support towards safe-haven currencies.
Also supporting the ‘Greenback’ were hawkish comments from the Federal Reserve: the central bank indicated that it could raise interest rates at all six meetings in 2022. A rally in US Treasury Bond yields lent further USD upside.
US durable goods orders are expected to have fallen in February, exerting potential pressure today – if trading sentiment remains bearish, however, the US Dollar may climb.
Canadian Dollar (CAD) Gains as Oil Prices Rise
The Canadian Dollar (CAD) was able to shrug off risk-off headwinds yesterday, as rising oil prices buoyed the ‘Loonie’ against its peers.
The disruption of Russian and Kazakh crude exports via the Caspian Pipeline Consortium (CPC) contributed partially to the crude oil price hike.
Data Releases
Mar 24th 08:00 AUD Markit Manufacturing PMI Flash (Mar) 55
Mar 24th 08:00 AUD Markit Services PMI Flash (Mar) 55.1
Mar 24th 18:00 EUR ECB General Council Meeting N/A
Mar 24th 19:00 EUR Markit Manufacturing PMI Flash (Mar) 56
Mar 24th 19:00 EUR Markit Services PMI Flash (Mar) 54.2
Mar 24th 19:30 GBP Markit/CIPS Manufacturing PMI Flash (Mar) 56.7
Mar 24th 19:30 GBP Markit/CIPS Services PMI Flash (Mar) 58
Mar 24th 21:00 GBP CBI Distributive Trades (Mar) 10
Mar 24th 22:30 USD Durable Goods Orders (Feb) -0.5%
Mar 24th 22:30 USD Initial Jobless Claims (19/Mar) 212K
Mar 24th 23:10 USD Fed Waller Speech N/A
Mar 24th 23:45 USD Markit Manufacturing PMI Flash (Mar) 56.3
Mar 24th 23:45 USD Markit Services PMI Flash (Mar) 56
Mar 24th 23:50 USD Fed Evans Speech N/A
Mar 25th 01:00 USD Fed Bostic Speech N/A