Australian Dollar (AUD) Firms as China Eases Covid-19 Restrictions
The Australian Dollar (AUD) edged higher amid a risk-on mood yesterday. Better than expected PMI figures for China’s manufacturing sector also bolstered AUD.
News that China would soon begin to ease its Covid-19 restrictions provided further support to the currency.
A speech from Reserve Bank of Australia (RBA) Governor Philip Lowe could weigh on AUD. Retail sales figures for October could also cause movement in the currency.
New Zealand Dollar (NZD) Jumps amid Risk-On Mood
The New Zealand Dollar (NZD) jumped on Thursday as the ‘Kiwi’ benefitted from a risk-on mood. Signals that the US Federal Reserve would slow its pace of policy tightening also boosted NZD.
NZD will see no significant data today, meaning that the currency is likely to be affected by any changes in risk appetite.
Pound (GBP) Leaps as PMI Outperforms Expectations
The Pound (GBP) rallied yesterday amid a risk-on mood. Dovish signals from the US Federal Reserve also bolstered Sterling.
Sterling’s gains were reinforced by a stronger-than-expected manufacturing PMI, which helped to revived hopes for a ‘milder’ UK recession.
With no significant data for GBP today, the currency may be driven by Bank of England (BoE) rate hike bets.
Euro (EUR) Bolstered by Record-Low Unemployment
The Euro (EUR) climbed on Thursday after data releases saw Eurozone unemployment fall to a fresh record-low in November.
A slump in German retail sales weighed on the single currency, however. A further contraction in the Eurozone’s manufacturing sector also kept gains for EUR limited.
A speech from ECB President Christine Lagarde could push the Euro higher if Lagarde hints at further rate hikes.
US Dollar (USD) Plummets as Powell Signals Rate Hike Slowdown
The US Dollar (USD) tumbled on Thursday after a speech from Federal Reserve Chair Jerome Powell. Powell signalled that the Fed would begin to slow its pace of policy tightening.
A slip in the PCE price index, the Fed’s core measure of inflation, also weighed on USD. The signs of cooling inflation likely added to markets paring back Fed rate hike bets.
US jobs data today could bolster USD today. Unemployment is expected to remain at record lows, whilst non farm payrolls are forecast to slip.
Canadian Dollar (CAD) Pulled Lower by Weak US Dollar
The Canadian Dollar fell on Thursday. CAD was pulled lower by its correlation to a tumbling US Dollar (USD).
Looking ahead, could a drop in November’s unemployment rate bolster the currency later this evening.