Australian Dollar (AUD) rises amid robust Chinese exports
Last Friday, the Australian Dollar (AUD) enjoyed support following stronger-than-expected Chinese trade data.
Exports from the economic superpower surged in December, which strengthened the ‘Aussie’ due to its status as a proxy for the Chinese economy.
Today, AUD may see rangebound trade due to a lull in macroeconomic data releases.
New Zealand Dollar (NZD) rallies as Chinese trade improves
The New Zealand Dollar (NZD) also strengthened at the end of last week, thanks to the upbeat Chinese trade data.
As China is a key trading partner of New Zealand, the news was welcomed by NZD investors and allowed the ‘Kiwi’ to shrug off a lack of domestic data.
New Zealand data continues to be scarce today, which may cap NZD’s movement during the session.
Pound (GBP) undermined by recession fears
Despite UK GDP data for November beating forecasts, the Pound (GBP) softened against its peers on Friday.
The three-month GDP average revealed a larger-than-expected contraction in the UK economy leading up to November. This saw recession anxieties resurface, weighing on Sterling.
Risk appetite is likely to be the predominant driver of movement for Sterling today, due to a light data calendar.
Euro (EUR) blighted by upbeat market mood
Risk-on trade scuppered the Euro (EUR) last Friday, as a lack of data drivers left the common currency vulnerable.
However, hawkish remarks from European Central Bank (ECB) Chief Economist Philip Lane may have cushioned EUR from steeper losses. Lane remarked that rate cuts were not a ‘near term’ discussion.
This evening, the latest German GDP data is due to be released. In 2023, the Eurozone’s largest economy is forecast to have shrunk by 0.3%, which may dent the common currency.
US Dollar (USD) dented by cooling PPI
With risk appetite returning and softer-than-forecast PPI data, the safe-haven US Dollar (USD) weakened on Friday.
US producer prices unexpectedly fell by 0.1% in December, leading to renewed Federal Reserve rate cut bets.
Data releases are few and far between today, therefore the ‘Greenback’ may trade primarily on market mood.
Canadian Dollar (CAD) wavers amid volatile oil prices
The Canadian Dollar (CAD) fluctuated at the end of last week as a lack of Canadian data left the crude-linked currency to trade in tandem with oil prices.
Crude prices may remain the key catalyst of movement for the ‘Loonie’ today. More volatility could see CAD waver again.
Data Releases
Jan 15th 19:00 EUR DE GDP (2023) -0.3%
Jan 15th 20:00 EUR Industrial Production (Nov) -0.3%