Australian Dollar Subdued by Minimal Data Releases

Australian Dollar (AUD) Wavers amid Light Data Calendar 

The Australian Dollar (AUD) ended the week on a turbulent note, rising against some peers and weakening against others. 

With minimal data on the cards, AUD was left to trade on market dynamics. While the cheery tone brought some tailwinds, the lack of additional drivers limited the ‘Aussie’. 

Due to a lull in data releases, the ‘Aussie’ may struggle to find a clear direction during today’s trade. Could an upbeat market mood strengthen AUD? 

New Zealand Dollar (NZD) Shrugs Off Downbeat Retail Sales Data 

At the end of the week, the risk-sensitive New Zealand Dollar (NZD) recovered against most major peers. 

The market mood remained decidedly upbeat, which allowed the ‘Kiwi’ to reverse losses brought about by weaker-than-forecast retail sales data. 

New Zealand data releases are to remain few and far between today, which may cap the ‘Kiwi’. 

Pound (GBP) Rises amid Hawkish BoE Remarks 

Friday saw the Pound (GBP) tick upward over the session, as investors reacted to hawkish comments from Bank of England (BoE) Chief Economist Huw Pill.  

Pill signalled in an interview that inflation remained stubborn, despite the recent cooldown in the headline rate. This, in turn, sparked interest rate hike bets which served to buoy GBP. 

The Confederation of British Industry’s (CBI) latest distributive trades data is due tonight. Signs of improvement in the UK retail sector could lift GBP. 

Euro (EUR) Wavers amid Mixed German Data 

Confirmation of a third-quarter contraction in the German economy weighed on the Euro (EUR) last Friday.  

However, these losses were offset somewhat by an improvement in German business confidence. Ifo found that optimism had increased in November, despite the reading missing forecasts. 

The common currency could struggle to find direction today, owing to a light data calendar. 

US Dollar (USD) Undermined by Bullish Session 

The US Dollar (USD) began last Friday’s session on a weak note, as market closures continued from Thanksgiving. 

Additionally, while the US services PMI printed above forecasts when markets reopened, signs of improvement in the US economy contributed to the jovial market mood. As such, the safe-haven currency was left to flounder. 

Risk appetite is likely to be the predominant driver of movement for USD today. An improvement in the market mood could weaken the ‘Greenback’. 

Canadian Dollar (CAD) Rises amid Surprise Improvement in Retail Sales 

The Canadian Dollar (CAD) strengthened last Friday, as Canadian retail sales in September printed above forecasts. 

Today, the ‘Loonie’ may tread water owing to a short supply of macroeconomic data releases. 

Data Releases 

Nov 27th 21:00 GBP CBI Distributive Trades (Nov) – 6