Australian Dollar (AUD) Gains amid US Dollar Pullback
The Australian Dollar (AUD) ticked higher on Thursday after a pullback in US Dollar (USD demand). The ‘Aussie’ slumped earlier in the day amid a risk-off mood.
Some dovish minutes from the Reserve Bank of Australia’s (RBA) September policy meeting also weighed on AUD.
Australia’s latest PMI figures could boost the ‘Aussie’ today if service sector output ticked higher this month as economists forecast.
New Zealand Dollar (NZD) Firms alongside AUD
The New Zealand Dollar (NZD) gained on Thursday due to its positive correlation to the Australian Dollar (AUD).
Looking ahead, NZD exchange rates are set to be influenced by any changes in risk appetite today. Will a reversal in risk sentiment led the ‘Kiwi’ to relinquish some of its recent gains?
Pound (GBP) Climbs Despite Cautious BoE Rate Hike
trade in the Pound (GBP) was mixed overnight on Thursday following a disappointing 0.5% interest rate hike from the Bank of England (BoE).
Warnings from the central bank that the UK has entered a recession also weighed on Sterling. The BoE outlined that the UK would see a further decline in GDP in the third quarter of 2023.
If the UK’s latest PMI figures report that service sector growth stalled this month, GBP exchange rates could weaken today.
Euro (EUR) Boosted by Expectations of Further ECB Rate Hikes
The Euro (EUR) was bolstered against its peers on Thursday. The European Central Bank’s (ECB) latest economic bulletin signalled that the central bank ‘expects to raise interest rates further’, boosting EUR.
Fears that the war in Ukraine could last for longer than expected limited gains for the single currency, however.
Looking ahead, the Euro is likely to limp over the finishing line this week, as the Eurozone’s latest PMIs look set to confirm activity in the bloc’s private sector continued to contract this month.
US Dollar (USD) Volatile after 0.75% Fed Rate Hike
The US Dollar initially leaped yesterday after the Federal Reserve’s hawkish 0.75% interest rate hike. The central bank also signalled that there would be more rate hikes to come.
The currency moved into over-sold territory later in the day, however. This, as well as a return of risk appetite, saw USD slip below the morning’s opening figures.
A downturn in private sector output could deepen the currency’s losses today if PMI figures print as forecast.
Canadian Dollar (CAD) Falls amid Downbeat Oil Price Forecasts
The Canadian Dollar (CAD) slipped on Thursday despite a rise in crude oil prices. Predictions that an economic slowdown could dent oil prices weighed on CAD.
CAD could see some drastic losses today if retail sales figures slump as forecast.
Data Releases
Sep 23rd 00:00 EUR Consumer Confidence (Sep) -25.8
Sep 23rd 09:00 AUD S&P Global Services PMI (Sep) 50.8
Sep 23rd 18:00 EUR S&P Global Services PMI (Sep) 49
Sep 23rd 18:30 GBP S&P Global/CIPS Services PMI (Sep) 50
Sep 23rd 22:30 CAD Retail Sales (Jul) -2%
Sep 23rd 23:45 USD S&P Global Services PMI (Sep) 45