Key pairs have seen tight price action on the first trading day of the month, with Eurozone, UK and US Manufacturing PMI failing to have a sustained reaction, while better than expected US Personal Income (0.40% vs. Exp. 0.30%) did see some temporary strength go through the USD, however this failed to sustain, with the USD-index ending the European session relatively flat.
However, commodity currencies have seen more notable price action as USD/CAD broke above the 1.3100 level to trade at its highest level in 10yrs amid CAD weakness amid the ongoing commodity weakness, with Brent Sep’15 futures today breaking below the USD 51.00 handle. Elsewhere, AUD saw initial weakness after lower than expected Chinese Manufacturing and Caixin Manufacturing PMIs to see AUD/USD break below 0.7300 ahead of the RBA rate decision set to take place tomorrow. Of note the RBA are expected by the majority of surveyed analysts to keep rates on hold at 2%, with just three of the 28 surveyed analysts forecasting a 25bps cut.
Also of note, NZD has seen mild strength today amid new light fundamental news, however this does come ahead of this week’s GlobalDairyTrade Fonterra milk auction, which has recently seen weakness in NZD, with the GDT price index having fallen at every auction since March 3rd.
Looking ahead, as well as the RBA rate decision, tomorrow sees the RBI rate decision, UK construction PMI, Canadian Manufacturing PMI and New Zeland unemployment rate.
However, commodity currencies have seen more notable price action as USD/CAD broke above the 1.3100 level to trade at its highest level in 10yrs amid CAD weakness amid the ongoing commodity weakness, with Brent Sep’15 futures today breaking below the USD 51.00 handle. Elsewhere, AUD saw initial weakness after lower than expected Chinese Manufacturing and Caixin Manufacturing PMIs to see AUD/USD break below 0.7300 ahead of the RBA rate decision set to take place tomorrow. Of note the RBA are expected by the majority of surveyed analysts to keep rates on hold at 2%, with just three of the 28 surveyed analysts forecasting a 25bps cut.
Also of note, NZD has seen mild strength today amid new light fundamental news, however this does come ahead of this week’s GlobalDairyTrade Fonterra milk auction, which has recently seen weakness in NZD, with the GDT price index having fallen at every auction since March 3rd.
Looking ahead, as well as the RBA rate decision, tomorrow sees the RBI rate decision, UK construction PMI, Canadian Manufacturing PMI and New Zeland unemployment rate.
Recommended Content
Editors’ Picks
EUR/USD consolidates recovery below 1.0700 amid upbeat mood
EUR/USD is consolidating its recovery but remains below 1.0700 in early Europe on Thursday. The US Dollar holds its corrective decline amid a stabilizing market mood, despite looming Middle East geopolitical risks. Speeches from ECB and Fed officials remain on tap.
GBP/USD advances toward 1.2500 on weaker US Dollar
GBP/USD is extending recovery gains toward 1.2500 in the European morning on Thursday. The pair stays supported by a sustained US Dollar weakness alongside the US Treasury bond yields. Risk appetite also underpins the higher-yielding currency pair. ahead of mid-tier US data and Fedspeak.
Gold appears a ‘buy-the-dips’ trade on simmering Israel-Iran tensions
Gold price attempts another run to reclaim $2,400 amid looming geopolitical risks. US Dollar pulls back with Treasury yields despite hawkish Fedspeak, as risk appetite returns.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network price is defending support at $1.80 as multiple technical indicators flash bearish. 21.67 million MANTA tokens worth $44 million are due to flood markets in a cliff unlock on Thursday.
Investors hunkering down
Amidst a relentless cautionary deluge of commentary from global financial leaders gathered at the International Monetary Fund and World Bank Spring meetings in Washington, investors appear to be taking a hiatus.