Australian Dollar (AUD) Climbs as China Welcomes International Travellers
The Australian Dollar (AUD) climbed yesterday. The ‘Aussie’ was boosted by a healthy risk appetite, as well as the easing of China’s international Covid travel restrictions.
Soaring Covid infections in China capped gains for the Australian Dollar, however. Chinese hospitals have come under intense pressure as the country sees a wave of the virus.
The ‘Aussie’ will see no major data releases today, meaning that the currency is likely to be driven by risk appetite and Chinese Covid developments.
New Zealand Dollar (NZD) Bolstered by Risk-On Mood
The New Zealand Dollar (NZD) was pushed higher on Wednesday by a risk-on market mood and its correlation to the Australian Dollar.
With no data releases today, movement in the ‘Kiwi’ is likely to remain linked to market risk appetite.
Pound (GBP) Rises amid Strike Talk Optimism
The Pound (GBP) rose yesterday. Reports that a deal between rail sector unions and bosses could be imminent provided a boost to the Pound.
Signs of an uptick in the UK’s retail sector also pushed GBP higher on Wednesday. UK retailers saw a roughly 40% rise in footfall on Boxing Day (26 Dec), with sector heads praising the figures as ‘promising’.
The Pound has no major data releases today, but any positive headlines pertaining to the rail strike could help buoy Sterling sentiment.
Euro (EUR) Slips as Prospect for Russia-Ukraine Peace Talks Wane
The Euro (EUR) fell on Wednesday as the single currency was pushed lower by a return of global risk appetite. Dimming prospects for peace negotiations between Russia and Ukraine also kept pressure on EUR.
Hawkish rhetoric from the European Central Bank (ECB) prevented a major downturn for the Euro, however.
The Euro has no major data releases scheduled for today. EUR could find support from ECB rate hike bets, as well as any shifts in trading sentiment.
US Dollar (USD) Slides amid Fed Rate Hike Pullback
The US Dollar (USD) dropped on Wednesday. The safe-haven ‘Greenback’ suffered from a return of risk appetite, as well as a downturn in US Treasury bond yields.
A pullback in market bets on aggressive action from the Federal Reserve also weighed on the US Dollar.
Looking ahead, the latest jobless claims figures today could boost USD if they signal a tight labour market as forecast.
Canadian Dollar (CAD) Pulled Lower by Oil Downturn
The Canadian Dollar (CAD) slipped on Wednesday. The commodity-tied ‘Loonie’ was pulled lower by a downturn in crude oil prices and a weaker US Dollar.
With a lack of significant data today, CAD will likely be affected by any shifts in oil prices.
Data Calendar
Dec 29th 23:30 USD Initial Jobless Claims (Dec/24) 225000