Australian Dollar (AUD) Wavers amid Mixed Trading Conditions
The Australian Dollar (AUD) faced some volatility at the end of last week’s trade.
While a hawkish policy statement from the Reserve Bank of Australia (RBA) bolstered the ‘Aussie’, a downbeat market mood put pressure on the risk-sensitive currency.
A lack of data today is likely to leave AUD at the mercy of risk appetite.
New Zealand Dollar (NZD) Choppy despite Strong PMI
The New Zealand Dollar (NZD) also experienced turbulent trade on Friday.
The ‘Kiwi’ enjoyed a initial lift after the latest New Zealand business PMI unexpectedly returned to growth. However, the anxious sentiment among investors weighed on NZD exchange rates.
With data thin on the ground today, NZD may be affected by any shifts in risk appetite.
Pound (GBP) Climbs as UK Dodges Technical Recession
Upbeat fourth-quarter GDP growth on Friday pushed the Pound (GBP) higher. The figures meant the UK narrowly avoided a technical recession last year.
Gains for the Pound were capped, however, as the monthly GDP data for December showed a larger-than-forecast contraction. Although the UK avoided a 2022 recession, the outlook remains bleak.
With no significant data today, forecasts for the health of the UK economy could affect the Pound’s fortunes.
Euro (EUR) Slides amid Escalating Russia-Ukraine Tensions
A retreat in risk appetite failed to produce gains for the safer Euro (EUR) at the end of last week. Instead, worries about an escalation in the Russia-Ukraine conflict weighed heavily on the common currency.
Hawkish comments from European Central Bank (ECB) policymaker Isabel Schnabel may have limited the Euro’s losses, however. Schnabel signalled on Friday that further interest rate hikes would be necessary.
Looking ahead, the Euro could be further affected by ECB rate hike bets and risk appetite.
Retreat in Risk Appetite Spurs US Dollar (USD) Gains
The safe-haven US Dollar (USD) benefitted from a cautious market mood on Friday. Recent hawkish comments from Federal Reserve policymakers lent further support to the ‘Greenback’.
An above-forecast increase in February’s consumer sentiment also contributed to USD’s gains.
There is set to be no data for USD today, meaning that the currency is likely to be affected by any significant changes in risk appetite.
Canadian Dollar (CAD) Leaps as Employment Data Beats Forecasts
The Canadian Dollar (CAD) climbed on Friday after a surprisingly strong jobs report. Participation rose and the Canadian economy added 150,000 new jobs, ten times the expected 15,000.
CAD will see no significant data today. Therefore, shifts in the price of oil could prompt movement in the crude-linked ‘Loonie’.