Australian Dollar (AUD) Weakens Despite Fall in Australian Unemployment
The Australian Dollar (AUD) weakened during Thursday’s session as a souring market mood limited the appeal of the ‘Aussie’.
Whilst the latest employment change data from Australia saw the unemployment rate edge fall to 4.6%, beating forecasts of 5%, the aftermath of the FOMC meeting minutes saw AUD exchange rates struggling to make any headwind against the majors yesterday.
An absence of economic data from Australia could see AUD exchange rates susceptible to further losses throughout today.
Pound (GBP) Mixed amid Absence of Economic Data
The Pound (GBP) found little support during yesterday’s session as an absence of economic data from the UK limited the appeal of Sterling.
Whilst the economic outlook for the UK remains positive, coronavirus cases continue to rise and investors remain cautious towards the Pound.
This afternoon, retail sales data from the UK for July could provide GBP exchange rates with some much-needed support, is sales growth exceeds expectations.
Euro (EUR) Loses Traction as US Dollar (USD) Soars
The Euro (EUR) softened yesterday as an absence of economic data paired with a strengthening US Dollar (USD) undermined the single currency.
Whilst the Euro has begun to recover from the latest FOMC meeting minutes, EUR exchange rates remained on the back bench for much of the day.
An absence of economic data from the Eurozone before the weekend will see investors continuing to keep an eye on the strength of the US Dollar during today’s European session.
US Dollar (USD) Bolstered by Initial US Jobless Claims
The US Dollar (USD) picked up pace overnight as the latest FOMC meeting minutes pointed towards the Federal Reserve tapering bond purchases before the end of the year.
More so, the latest initial US jobless claims have shown that the US labour market looks to be recovering at a sustained pace.
Overnight a speech from the Federal Reserve’s Robert Kaplan could provide the ‘Greenback’ with fresh support heading into the weekend if Kaplan reiterates the banks tapering plans.
Canadian Dollar (CAD) Dips on Sliding Oil Prices
The Canadian Dollar (CAD) dipped on Thursday as sliding oil prices dented the appeal of the commodity-correlated ‘Loonie’. A better-than-expected ADP employment change reading from Canada was largely ignored by markets.
New Zealand Dollar (NZD) Weakens on back of Risk-Off Trade
The New Zealand Dollar (NZD) slipped lower across the board in response to a weakening market mood during Thursday’s session.
Furthermore, the recent announcement from the Reserve Bank of New Zealand (RBNZ) that interest rates would not be raised also continued to pressure the ‘Kiwi’.
Data Releases
20th Aug 16:00 GBP Retail Sales MoM (Jul) 0.4%
20th Aug 22:30 CAD Retail Sales (Jun) 4.4%
21st Aug 01:00 USD Fed Kaplan Speech