Overnight, AUD led the slide against the greenback, weighed on by the Chinese HSBC Manufacturing PMI (Mar P) M/M 49.2 vs. Exp. 50.5 which showed an 11 month low, prompting AUD/USD to pull off its 1-month highs, however, in the first half of the European session commodity linked currencies continued to gain against the greenback with AUD/USD printing fresh 1 month highs at 0.7939 before pulling off best levels heading into the European close. Elsewhere, the Hungarian Central bank cut rates by 15bps to 1.95%, where analysts had expected a cut of 20bps which saw EUR/HUF fall by 74 pips, however additional comments from the central bank suggested further ‘cautious easing’ could be on the cards in the near future which saw EUR/HUF reverse its earlier downside.
Looking ahead, this evening sees the release of the US API crude inventories, while tomorrows’ data slate provides the German IFO Business Climate, US Durable Goods and DoE crude inventories which are expected to show a build of 4.75mln.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.