Australian Dollar (AUD) Loses Ground on Sour Market Mood
The Australian Dollar (AUD) found itself weakening on Friday as a sour market mood and lack of economic data from Australia did nothing to support the ‘Aussie’.
Whilst the Australian Dollar had enjoyed a relatively upbeat week on the back of risk-on trade the latest non-farm payrolls from the US caused AUD exchange rates to sour heading into the weekend.
The start of this week will see Australian Dollar investors keeping an eye on any developments in the global market mood to drive movement in the currency today.
Pound (GBP) Muted amid Lack of Fresh Impetus
The Pound (GBP) traded sideways on Friday, with the absence of any notable economy data leaving the currency without any strong directional bias.
As a result, Sterling mostly consolidated Thursday’s gains, following the Bank of England’s (BoE) interest rate decision and subsequent press conference.
A continued absence of economic data from the UK will likely see GBP investors focus on domestic coronavirus developments at the start of this week.
Euro (EUR) Unable to Find Support as US Dollar (USD) Soars
The Euro (EUR) was unable to find any support before the weekend as disappointing German industrial production figures limited the appeal of the single currency.
More so, the strong negative correlation between the Euro and US Dollar saw EUR exchange rates tumble as the ‘Greenback’ soared higher.
This evening will see the release of German balance of trade figures which could provide the Euro with much needed support during this week’s session.
US Dollar (USD) Supported by Better-Than-Expected US Non-Farm Payrolls
The US Dollar (USD) found itself supported on the back of a strong rise in US non-farm payroll figures during Friday’s session.
US non-farm payrolls rose by 943,000 during July, boosting Federal Reserve tapering speculation, as the data gave a broad indication that the US labour market is well on the road to recovery.
Overnight, the JOLTs job openings data from the US could provide fresh impetus for the ‘Greenback’ to push higher against the majors.
Canadian Dollar (CAD) Strengthens on Fall in Canadian Unemployment
Heading into the weekend the Canadian Dollar (CAD) remained broadly appealing on the back of a Canada’s latest employment figures, in spite of employment growth rising at a slower pace than initially expected.
New Zealand Dollar (NZD) Weakens on Risk-Off Trade
The New Zealand Dollar (NZD) struggled during Friday’s session as risk-off trade limited the appeal of the risk-correlated ‘Kiwi’.
Data Releases
9th Aug 16:00 EUR DE Balance of Trade (Jun) €16.8bn
10th Aug 00:00 USD JOLTs Job Openings (Jun) 9.0m