Australian Dollar (AUD) Bolstered by Easing of Chinese Covid Restrictions
The Australian Dollar (AUD) climbed on Thursday. A risk-on impulse helped to lift the ‘Aussie’ yesterday. A healthy domestic trade surplus in November also lent support to AUD.
The continued easing of China’s Covid-19 measures also pushed AUD higher. China recently allowed domestic travel without proof of a negative Covid test.
A slip in Chinese inflation figures could weigh on AUD today amid concerns of deflation in the world’s second-largest economy.
New Zealand Dollar (NZD) Firms as Market Mood Improves
The New Zealand Dollar (NZD) firmed yesterday as a risk-on impulse boosted the ‘Kiwi’.
A forecast drastic recovery in the manufacturing sales could boost the currency today. Shifts in risk appetite could also affect NZD.
Pound (GBP) Volatile as Strikes Pose Threat to Growth
The Pound (GBP) saw mixed movement on Thursday as the prospect of widespread industrial action unnerved GBP investors.
Hospitality sector leaders warned of the harmful impact of rail strikes, amid warnings that some businesses are unlikely to survive though January, without a bump in holiday trade.
With no significant data for the Pound today, the UK economy’s poor outlook could limit the currency’s upside potential.
Euro (EUR) Drops as Russia Launches Fresh Attacks in Eastern Ukraine
The Euro (EUR) edged lower over the course of Thursday amid a recovery in market sentiment. Attacks by Russian forces in Eastern Ukraine also kept pressure on EUR.
On the other hand, EUR saw its slide limited by bets on a 50bps interest rate hike from the European Central Bank (ECB).
Looking ahead, a speech from ECB policymaker Andrea Enria could help the Euro to recover if he also hints at further rate hikes.
US Dollar (USD) Slides as Jobless Claims Figures Point to Cooling Labour Market
The US Dollar (USD) slipped on Thursday amid an uptick in global risk appetite. The latest jobless claims figures also weighed on USD as they rose slightly.
The country’s labour market remained tight however, bolstering the chances of a bumper interest rate hike from the Federal Reserve. This in turn limited losses for USD.
A predicted uptick in the latest US core PPI release today could add to predictions of an aggressive Fed rate hike and boost the US Dollar.
Canadian Dollar (CAD) Boosted by Oil Price Recovery
The Canadian Dollar (CAD) rose on Thursday. The commodity-tied ‘Loonie’ was boosted by a recovery in crude oil prices.
In the absence of any notable domestic data, CAD exchange rates are likely to remain tied to oil price dynamics today.
Data Releases
Dec 9th 07:45 NZD Manufacturing Sales (Q3) 4.5%
Dec 9th 17:45 EUR ECB Enria Speech
Dec 9th 23:30 USD PPI (Nov) 0.2%
Dec 9th 23:30 USD Core PPI (Nov) 0.2%
Dec 10th 01:00 USD Michigan Consumer Sentiment (Dec) 56.9