Australian Dollar (AUD) Flip-Flops in Mixed Trade
The Australian Dollar (AUD) traded in a wide range at the end of last week. AUD exchange rates initially firmed through the Asian trading session amid some cautious optimism.
However, this gave way to some significant selling pressure after the US Dollar shot higher during the American session.
The release of Australia’s latest consumer and business confidence figures will be in focus for AUD investors in the first half of this week and could boost the ‘Aussie’ if sentiment improves as forecast.
New Zealand Dollar (NZD) Wavers as Market Sentiment Fluctuates
The New Zealand Dollar (NZD) was also met by volatility on Friday amid the fluctuating market mood.
NZD data is in short supply in the first half of this week, likely leaving movement in the ‘Kiwi’ to remain tied to market risk appetite. Could a cautious mood weigh on NZD exchange rates?
Pound (GBP) Undermined by Data Lull
The Pound (GBP) struggled to attract support at the end of last week amid the continued lull in UK economic data.
Adding to Sterling’s woes was a deterioration in market sentiment through the latter half of the session.
Looking ahead, the publication of the UK’s latest jobs report will be in focus for GBP investors, ahead of the Bank of England’s (BoE) rate decision later in the week.
Euro (EUR) Flat Following German CPI
The Euro (EUR) traded sideways on Friday. Initial pressure came from the latest German consumer price index as November’s finalised figures confirmed a sharp slowdown in inflation.
The single’s currency’s negative correlation with the US Dollar then kept EUR exchange rates suppressed as the week came to a close.
Germany’s latest ZEW economic sentiment index is set for release on Tuesday. If morale in the Eurozone’s largest economy remains positive this could help lift the Euro.
US Dollar (USD) Soars on Bullish Payrolls Data
The US Dollar (USD) jumped at the end of last week as the latest US payrolls report revealed that domestic unemployment unexpectedly fell in November after the US economy added more jobs than expected.
This led to a repricing of Federal Reserve interest rate expectations, with the odds of a March rate cut falling below 50%.
The latest US consumer price index will be the initial focus for USD investors this week. Could signs of sticky inflation boost the US Dollar ahead of the Fed’s interest rate decision on Thursday?
Canadian Dollar (CAD) Firms as Oil Prices Rise
The Canadian Dollar’s (CAD) positive correlation with the US Dollar, alongside an uptick in oil prices helped the ‘Loonie’ trend higher on Friday.
In the absence of any notable Canadian data today, it’s likely CAD exchange rates will remain sensitive to oil price dynamics.