Australian Dollar (AUD) stumbles as Middle East conflict broadens
The Australian Dollar (AUD) weakened on Monday, as flaring tensions in the Middle East soured the market mood.
Minimal data further pressured the ‘Aussie’ and left investors with little reason to support the currency.
Today, AUD could strengthen if this morning’s retail data reflects an improvement in November.
New Zealand Dollar (NZD) slips as market mood sours
The New Zealand Dollar (NZD) suffered a similar fate to the ‘Aussie’ yesterday, with the dismal mood weighing the currency down.
Risk appetite continued to decline over the session, leaving NZD exchange rates weak.
With little data to go on today, the ‘Kiwi’ may remain at the behest of the market mood. More downbeat trade could scupper NZD.
Pound (GBP) subdued by lack of data
The Pound (GBP) traded without a clear direction yesterday, owing to a light data calendar.
Bearish trading conditions brought further pressure to Sterling, prompting it to lose out against safer assets.
Data continues to be thin on the ground today, which may leave the Pound to trade without direction.
Euro (EUR) supported by German trade rebound
German trade data smashed forecasts yesterday, underpinning the Euro (EUR) against its peers.
Exports rebounded by an astonishing 3.7% in November, leading to a significant increase in the German trade surplus. However, EUR’s gains were trimmed by weaker-than-expected German factory orders.
German data is likely to remain the focus this evening. Industrial production is forecast to have improved by 0.2% in November, which could boost EUR. Similarly, a hold in the Eurozone’s unemployment rate could lift the common currency.
US Dollar (USD) firms amid risk-off trade
Due to a short supply of data, the US Dollar (USD) was unable to fully capitalise on Monday’s risk-averse trading conditions.
As such, the safe-haven ‘Greenback’ remained relatively steady against most peers, although it did manage to gain some ground.
Risk appetite is likely to remain the primary catalyst of movement for USD again today, as the lull in macroeconomic releases continues.
Canadian Dollar (CAD) dips following oil price cuts
Following the announcement of oil price cuts from Saudi Arabia, the crude-linked Canadian Dollar (CAD) fell against its rivals yesterday.
This evening, the latest Canadian trade data is due for release. Economists expect a significant fall in November’s trade surplus, which could weaken CAD.
Data Releases
Jan 9th 17:00 EUR DE Industrial Production (Nov) 0.2%
Jan 9th 20:00 EUR Unemployment Rate (Nov) 6.5%
Jan 9th 23:30 CAD Balance of Trade (Nov) CA$2bn