Australian Dollar (AUD) wobbles following mixed PMIs
The Australian Dollar (AUD) wavered in a narrow range on Friday as mixed Australian PMI data left the currency struggling to find a clear direction.
The ‘Aussie’ then dropped sharply as US trade began on Friday night. The US Dollar (USD) suddenly leapt higher, denting AUD due to the currencies’ negative correlation.
Risk appetite could drive the Australian Dollar today amid a lack of economic data. Investors may also be hesitant ahead of the latest meeting minutes from the Reserve Bank of Australia (RBA), due out tomorrow.
New Zealand Dollar (NZD) buoyed by manufacturing PMI
The New Zealand Dollar (NZD) also faced volatility on Friday, wavering higher against some peers before trimming its gains in the evening.
A far better-than-forecast manufacturing PMI for November seemed to underpin NZD exchange rates.
This morning, the ‘Kiwi’ could face volatility following the publication of the latest consumer confidence index and services PMI.
Pound (GBP) ticks higher following PMIs
The Pound (GBP) rose at the start of Friday’s European session after the UK’s latest service sector PMI beat forecasts.
However, Sterling was unable to hold on to its gains against some of its stronger rivals, as a deeper contraction in UK factory activity stifled the currency’s upside.
UK economic data is in short supply today, which may leave the Pound trading without a clear direction.
Euro (EUR) slides as PMIs miss forecasts
The Euro (EUR) slumped on Friday after the Eurozone’s latest PMI results missed forecasts.
The surveys pointed to a deepening contraction in private sector activity, fuelling fears of a recession in the bloc.
Looking ahead to this evening, Germany’s latest business climate index is expected to show an improvement in morale. Could this lift the common currency?
US Dollar (USD) jumps following Fed remarks
The US Dollar leapt higher on Friday following hawkish comments from Federal Reserve policymaker John Williams.
Williams warned that markets were overreacting to the Fed’s recent rate decision, which had a distinctly dovish tilt. He also pushed back on rate cut speculation.
Amid a lack of US economic data today, market risk dynamics may drive most movement in the safe-haven US Dollar.
Canadian Dollar (CAD) rises alongside USD
The Canadian Dollar (CAD) firmed on Friday, thanks to its positive correlation to USD. Even a sharp drop in oil prices failed to drag the crude-linked ‘Loonie’ lower.
Market-moving Canadian data is absent from the calendar today. As a result, CAD exchange rates could trade on oil price dynamics.
Data Releases
Dec 18th 07:00 NZD Westpac Consumer Confidence (Q4) 85.1
Dec 18th 07:30 NZD Services NZ PSI (Nov) 48.4
Dec 18th 19:00 EUR German Business Climate (Dec) 87