Australian Dollar (AUD) Falls as Chinese Private Sectors Struggle
The Australian Dollar (AUD) dropped on Thursday. The ‘Aussie’ was pulled lower by souring global risk appetite, in spite of a solid jobs report.
Poor Chinese data also weighed on AUD. November’s data for the country’s retail and manufacturing sectors pointed to a sharp downturn.
December’s PMI data could have a mixed effect on AUD today. The service sector is expected to contract, whereas manufacturing is expected to have expanded at a slower pace.
New Zealand Dollar (NZD) Drops amid Risk-Off Mood
The New Zealand Dollar (NZD) slipped yesterday. A risk-off market mood and poor Chinese data releases weighed on the ‘Kiwi’ and overshadowed a stronger-than-expected domestic GDP release.
A contraction in NZ private sector output could dent confidence in NZD today if figures print as forecast.
Pound (GBP) Slips as BoE Forecasts Fourth Quarter Technical Recession
The Pound (GBP) fell on Thursday after the Bank of England’s (BoE) interest rate decision proved more dovish than hoped.
While the BoE hiked interest rates by 50bps, two members of the BoE’s Monetary Policy Committee (MPC) voted to leave rates unchanged. Potentially signalling rates may peak slightly lower than previous expected.
A slowdown in November’s retail sales could keep pressure on GBP today. Additionally, a forecast contraction in the UK’s private sectors may also weigh on Sterling.
Euro (EUR) Climbs as ECB Signals Further Hikes Needed to Tame Inflation
The Euro (EUR) was bolstered by the hawkish tone struck by the European Central Bank’s (ECB) following its own 50bps interest rate hike on Thursday.
EUR investors seized on comments from ECB President Lagarde in which she signalled that further rate hikes were on the horizon.
Looking ahead, a forecast contraction in the Eurozone and Germany’s private sectors could see EUR slip. A widening in the trading bloc’s trade deficit could also push the Euro lower.
US Dollar (USD) Climbs as Fed Signals More Rate Hikes to Come
The US Dollar (USD) continued to make gains on Thursday following the Federal Reserve’s interest rate decision. The Fed signalled that further hikes would be coming.
The safe-haven ‘Greenback’ also benefitted from a cautious market mood yesterday. A slump in retail sales capped USD’s gains, however.
Looking ahead, a predicted downturn in December’s private sector performance could pull the US Dollar lower today.
Canadian Dollar (CAD) Gains Despite Oil Price Downturn
The Canadian Dollar (CAD) was boosted by a stronger US Dollar on Thursday. Gains for the ‘Loonie’ were capped by a downturn in oil prices, however.
With no significant data today, CAD will likely be affected by oil price dynamics today.
Data Releases
Dec 16th 07:30 NZD Business NZ PMI (Nov) 49.9
Dec 16th 08:00 AUD S&P Global Services PMI (Dec) 49.9
Dec 16th 17:00 GBP Retail Sales (Nov) 0.3%
Dec 16th 19:00 EUR S&P Global Services PMI (Dec) 48.5
Dec 16th 19:30 GBP S&P Global/CIPS Services PMI (Dec) 48.5
Dec 17th 00:45 USD S&P Global Services PMI (Dec) 46.8