Australian Dollar (AUD) Recovers from Downbeat GDP Data
At the beginning of yesterday’s trade, the Australian Dollar (AUD) struggled amid a disappointing set of GDP data.
Third-quarter data showed a 0.2% expansion, below forecasts of 0.4%. However, the ‘Aussie’ staged a recovery over the course of the day’s trade as the market mood began to brighten.
AUD may endure volatility today, as investors pore over the latest Australian trade data. If the country’s trade surplus increased in October as forecast, the ‘Aussie’ could climb.
New Zealand Dollar (NZD) Whipsaws amid Variable Market Mood
The New Zealand Dollar (NZD) seesawed over Wednesday’s session, as risk appetite remained in flux.
Initially, the risk-sensitive ‘Kiwi’ gained ground amid a cheery mood. Sentiment then soured at the beginning of the European session, before recovering towards the end, allowing NZD to waver higher overall.
Data releases remain few and far between for the ‘Kiwi’ today, which may prompt muted trade.
Pound (GBP) Undermined by Cautious BoE Comments
On the back of a cautious speech from Bank of England (BoE) Governor Andrew Bailey, the Pound (GBP) struggled to attract support yesterday.
In a press conference, Governor Bailey reiterated that interest rates needed to remain higher for longer. However, his language was slightly softer than in previous speeches, which suggested a less hawkish approach.
With little in the way of data for investors to go on today, GBP exchange rates may trade without a clear direction.
Euro (EUR) Wavers amid Shock Drop in German Factory Orders
The Euro (EUR) saw its movements restricted yesterday, following downbeat German factory data.
In October, factory orders declined by a substantial 3.7%, printing far below estimates of a 0.2% increase. However, this was offset by a 0.1% rise in retail sales across the Eurozone – the first expansion in four months.
The latest German industrial production data is due to print this evening, with markets expecting a 0.2% increase. However, following yesterday’s steep drop in factory orders, the release could miss forecasts and weaken EUR.
US Dollar (USD) Muted as US Labour Market Loosens
Disappointing ADP employment data stifled the US Dollar (USD) yesterday, as employment grew less than anticipated.
In November, private sector employment failed to meet expectations and signalled slack in the US labour market. As a result, the ‘Greenback’ failed to strengthen against most peers as investors began to eye Federal Reserve interest rate cuts.
Looking ahead, initial jobless claims for the week ending 2 December release tonight. Markets expect an increase in claims, which could drag USD lower.
Canadian Dollar (CAD) Ticks Upward amid Stronger-than-Expected PMI
The Ivey PMI for November beat forecasts overnight, allowing the Canadian Dollar (CAD) to shrug off tumbling oil prices and inaction from the Bank of Canada (BoC).
Oil prices may be the primary driver of movement for the crude-linked ‘Loonie’ today. If prices continue to fall, CAD may weaken in turn.
Data Releases
Dec 7th 10:30 AUD Balance of Trade (Oct) AU$7.5bn
Dec 7th 17:00 EUR DE Industrial Production (Oct) 0.2%
Dec 7th 23:30 USD Initial Jobless Claims (02/Dec) 222,000