Australian dollar (AUD) retreats amid profit-taking
The Australian dollar (AUD) was initially steady on Friday before trimming some of its weekly gains in the evening.
The downside seemed due to profit-taking after the currency’s impressive performance last week, with AUD having rebounded from multi-month lows to end the week up around 1% against some rivals.
This morning, Reserve Bank of Australia (RBA) Deputy Chair Andrew Hauser is due to speak. If he echoes the hawkish tone struck by RBA Chair Michele Bullock last week, AUD could strengthen.
New Zealand dollar (NZD) wavers amid shifting market mood
The New Zealand dollar (NZD) initially strengthened during Friday’s session as a cautiously upbeat market mood boosted demand for the risk-sensitive ‘kiwi’.
However, NZD relinquished its gains as the day progressed and the mood grew more muted.
New Zealand data is in short supply today, leaving NZD potentially subdued ahead of the Reserve Bank of New Zealand’s (RBNZ) interest rate decision on Wednesday.
Pound (GBP) muted in absence of data
The pound (GBP) was subdued on Friday, trading without a clear direction amid a lack of UK economic data.
In addition, the mixed market mood saw the increasingly risk-sensitive pound fail to find a clear direction against its peers.
High-impact data in the week ahead could drive volatility in pound, kicking off with tomorrow’s labour market report. Before then, Sterling may be muted.
Euro (EUR) uncertain as risk appetite flatlines
The euro (EUR) also faced uncertain movement on Friday amid the lukewarm sentiment among investors.
Germany’s final inflation figures had little impact on EUR, as they printed in line with preliminary estimates.
A forecast decline in German wholesale prices could pressure the euro today, amid a lack of more impactful data.
US dollar (USD) stabilises following volatile week
The US dollar (USD) seemed to stabilise at the end of last week’s session, as the volatility that rocked markets earlier in the week fizzled out.
While the shifting market mood did see the ‘greenback’ waver against some peers, the currency’s movements were limited in scope.
Market-moving American data is absent from the calendar today. This could leave the safe-haven ‘greenback’ to trade in line with market risk dynamics.
Canadian dollar (CAD) unsure amid mixed jobs data
The crude-linked Canadian dollar (CAD) was uncertain on Friday, as wavering oil prices and a mixed jobs report muted the currency.
Notable Canadian data is also thin on the ground today, potentially leaving the crude-linked ‘loonie’ vulnerable to oil price fluctuations.
Data Releases
12th Aug 10:00 AUD RBA Hauser Speech
12th Aug 16:00 EUR German Wholesale Prices (Jul) -0.1%