Australian Dollar (AUD) Climbs amid Upbeat Trade
The Australian Dollar (AUD) rose on Friday as a recovering market mood increased the appeal of the risk-sensitive ‘Aussie’.
Meanwhile, a rise in iron ore prices – a key Australian export – also helped AUD.
The ‘Aussie’ will see no key data today. AUD is likely to be affected by shifts in risk appetite and news from China.
New Zealand Dollar (NZD) Pushed Higher by Risk-On Mood
The New Zealand Dollar (NZD) gained at the end of last week as the ‘Kiwi’ was bolstered by a risk-on mood.
NZD’s positive correlation to the Australian Dollar added to the upside.
Looking to today, a lack of data will leave NZD vulnerable to any changes in risk appetite.
Pound (GBP) Slumps as Retail Sales Tumble Unexpectedly
The Pound (GBP) fell on Friday. Sterling was pulled lower by a surprise fall in December’s retail sales, adding to the UK’s gloomy outlook.
Sales slumped by 1%, rather than growing by 0.5% as expected, as consumers cut back on spending due to the country’s cost-of-living crisis.
With no data releases for the Pound today, the currency could see movement from Bank of England (BoE) interest rate hike bets and the prospect of further strike action from public sector workers.
Euro (EUR) Falls despite Signs ECB Will Push Ahead with Rate Hikes
The Euro (EUR) slipped against its peers at the end of last week amid a risk-on impulse.
The Euro saw its losses limited by hawkish comments from European Central Bank (ECB) President Christine Lagarde, however.
Eurozone data is thin on the ground today. As a result, news about the Russia-Ukraine crisis may impact EUR exchange rates.
US Dollar (USD) Bolstered by Hawkish Fed Comments and Bond Rally
The US Dollar (USD) rose on Friday amid a rally in US Treasury bond yields following hawkish comments from two Federal Reserve officials earlier in the week.
However, the prevailing risk-on mood in markets limited the safe-haven currency’s gains.
The US Dollar will see no data releases today. USD may be affected by shifts in risk appetite and Fed rate hike bets.
Canadian Dollar (CAD) Gains as Retail Sales Print Better than Expected
The Canadian Dollar (CAD) firmed against its peers on Friday. A rise in crude oil prices as well as better-than-forecast retail sales figures underpinned the ‘Loonie’.
With no significant data today, CAD will likely be affected by any shifts in oil prices.