Australian Dollar Rallies before Jobs Data

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Headlines

  • AUD gains on USD, EUR, GBP
  • Pound plunges following Broadbent comments – He warns of a lull in UK productivity.
  • GBP/EUR stable following Eurozone CPI figures – Sliding core inflation likely to frustrate ECB’s plans to wrap up its bond purchases.
  • Australian employment data ahead


Australian Dollar Broadly Strengthens

The Westpac Consumer Confidence index might have revealed a dip in sentiment in May, but the Australian Dollar (AUD) still posted broad-based gains overnight.

AUD jumped by over 0.5% against the Pound, US Dollar and Euro ahead of the release of domestic employment figures.

Today’s jobs data is expected to show that the Australian economy added 20k positions in April, up from 4.9k positions in March.
Robust employment figures could help the ‘Aussie’ stand firm as we hurtle towards the weekend.

Pound (GBP) Exchange Rate Tumbles as BoE Deputy Warns UK Economy is Past its Peak

The Pound (GBP) put on a mixed performance during the European session as the Bank of England's (BoE) Deputy Governor Ben Broadbent warned that the UK economy may be past its peak.

Describing the UK economy as entering a ‘menopausal’ era, a term he was later forced to apologise for, he suggested the UK may be experiencing a lull between the digital era and the next big technological breakthrough, akin to the Victorian-era transition from steam to electricity.

Looking ahead, GBP exchange rates may look to mount a recovery later today should the UK’s recent pay figures led to a more optimistic outlook from the BoE’s Chief Economist Andy Haldane.

EUR Exchange Rates Dip on Eurozone Inflation Figures

The single currency came under pressure yesterday as the Eurozone’s latest CPI figures confirmed that inflation slowed in April.

Markets were particularly concerned by the sharp drop in the core CPI figures as it suggests headline inflation is largely being propped up by the recent surge in oil prices, something which will not be lost on the European Central Bank (ECB) as it discusses its exit from quantitative easing.

Rising US Hike Expectations to Deliver Further USD Gains?

The US Dollar’s rally began to run out of steam yesterday but the currency is likely to press higher once again if a speech from the Federal Reserve’s Robert Kaplan helps bolster Fed rate hike expectations.

Canadian Dollar Rises as Oil Nears $80 a Barrel

The Canadian Dollar firmed yesterday as markets began to contemplate the possibility of oil prices crossing the $80 threshold, with the ‘Loonie’ (CAD) also being lifted by some stronger-than-expected domestic manufacturing sales figures.

New Zealand Dollar Climbs as Risk Appetite Improves

New Zealand Dollar (NZD) exchange rates broadly rallied in the face of rising risk appetite. Today’s New Zealand producer price index is unlikely to have much impact on the New Zealand Dollar.


Data Released

11:00 AUD Consumer Inflation Expectation
11:30 AUD Employment Change
11:30 AUD Unemployment Rate
22:30 USD Initial Jobless Claims

Post by TorFX

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