Australian Dollar (AUD) Falls as Chinese Exports Slump
The Australian Dollar (AUD) slipped on Friday. AUD came under pressure from a sharp drop in Chinese export levels
A retreat of global risk appetite also weighed on the ‘Aussie’. Forecasts of a protracted Covid wave across China added to this negative sentiment.
With no significant data releases today, the Australian Dollar is likely to be affected by any shifts in risk appetite and news from China.
New Zealand Dollar (NZD) Pulled Lower by Risk-Off Mood
The New Zealand Dollar (NZD) dropped at the end of last week. The ‘Kiwi’ was pulled lower by a risk-off market mood, as well as its correlation to the Australian Dollar.
NZD will see no data releases today, meaning that shifts in risk appetite are likely to be the main cause of the currency’s movements.
Pound (GBP) Gains as GDP Figures Surprise to Upside
The Pound (GBP) firmed against many of its peers on Friday. Sterling found support from better-than-forecast GDP figures, which indicated a 0.1% expansion in the UK economy in November.
The Pound’s gains were capped by disappointing output figures from the UK’s manufacturing sector, however. A pullback in bets on further Bank of England (BoE) interest rate hikes also kept pressure on GBP.
Looking ahead, Sterling is likely to be affected by BoE rate hike bets and any further industrial action, as public sector workers continue to strike in a dispute over pay.
Euro (EUR) Drops amid Profit-Taking
The Euro (EUR) initially made strong gains following a basket of upbeat data releases on Friday. Figures indicated a narrowing of the Eurozone’s trade deficit, as well as an above-forecast rise in industrial production. Additionally, Germany’s 2022 GDP growth cooled by less than forecast.
EUR fell as the day went on however, as profit-taking all but wiped out the single currency’s earlier gains.
The Euro could see additional losses today if German wholesale prices slip for a third consecutive month as forecast.
US Dollar (USD) Boosted by Retreat in Risk Appetite
A cautious market mood bolstered US Dollar (USD) over the course of Friday, with further support coming from a rally in US Treasury bond yields. USD saw further gains off the back of above-forecast consumer sentiment figures.
The US Dollar saw headwinds from bets on a slower pace of Federal Reserve policy tightening, however.
With no data releases today, USD is likely to be affected by risk appetite and Fed rate hike bets.
Canadian Dollar (CAD) Pushed Higher by Oil Price Rise
The Canadian Dollar (CAD) rose on Friday. The oil-tied ‘Loonie’ was bolstered by a rise in crude prices as well as a stronger US Dollar.
The Canadian Dollar could come under pressure today from a n expected slowdown in November’s manufacturing sales. Shifts in oil prices may also affect CAD.
Data Releases
Jan 16th 17:00 EUR German Wholesale Prices (Dec) -1.2%
Jan 16th 23:30 CAD Manufacturing Sales (Nov) 0.6%