Australian Dollar (AUD) Climbs in Risk-On Trade
The Australian Dollar (AUD) struck higher on Thursday, as the appeal of the risk-sensitive ‘Aussie’ was bolstered in risk-on trade.
Further boosting AUD exchange rates were the publication of Australia’s latest trade figures, which reported a surprisingly strong jump in Australia’s trade surplus in October.
Turning to today’s session, the Australian Dollar may maintain its upward trajectory as October’s finalised retail sales figures are expected to confirm a strong rebound in sales growth.
Pound (GBP) Rallies on Brexit Hopes
The Pound (GBP) struck higher on Thursday, rallying in response to apparent optimism that a last-minute Brexit trade deal between the UK and EU may still be found.
This came on the back of comments from Ireland’s Foreign Minister Simon Coveney and the UK’s Education Secretary Gavin Williamson, who both seemed hopeful a deal could be struck in the coming days.
Looking ahead, it’s safe to assume that Brexit will remain the focus for GBP investors through the end of this week’s session, potentially allowing the Pound to extend its recovery if this optimism continues.
Euro (EUR) Firms as Retail Sales Rebound
The Euro (EUR) continued to push higher yesterday, albeit at a more modest pace than it has earlier in the week, as the single currency continued to benefit from broad weakness in the US Dollar (USD).
This uptrend in the Euro was also supported by some positive retail sales figures, as Eurozone sales growth rebounded from –1.7% to 1.5% in October.
Kicking off today’s European session will be the publication of Germany’s latest factory order figures, which may offer additional support to the Euro if order growth accelerated in in October as expected.
US Dollar (USD) Extends Losses in Upbeat Trade
The US Dollar (USD) continued to trend lower through yesterday’s trading session, as demand for the safe-haven currency continued to be curbed by the upbeat market sentiment.
This came on the back of hopes for both a new US stimulus package as well as suggestions the US will soon approve the first coronavirus vaccines for use.
Coming up, the spotlight today will be on the latest US payroll figures. Will a slowing of employment growth in November be another cause of concern for USD investors?
Canadian Dollar (CAD) Subdued amid OPEC Talks
The Canadian Dollar (CAD) struggled to find support on Thursday, with the appeal of the commodity linked ‘Loonie’ being limited by fluctuating oil prices as OPEC discussed the potential rollover of production cuts into the new year.
However, the Canadian Dollar could continue struggling later tonight if Canada’s latest jobs reports reveals the recent downtrend in unemployment continued into November.
New Zealand Dollar (NZD) Buoyed as Risk-Sentiment Improves
Like its antipodean cousin, the New Zealand Dollar (NZD) also struck higher during yesterday’s trading session, as demand for the high-yield ‘Kiwi’ rose in light of improving market sentiment.
Data Releases
10:30 AUD Retail Sales (Oct) 1.6%
17:00 EUR German Factory Orders (Oct) 1.5%
19:30 GBP Construction PMI (Nov) 52
23:30 CAD Unemployment Rate (Nov) 8.9%
23:30 USD Non-Farm Payrolls (Nov) 469,000