Australian dollar (AUD) rallies on strong labour market data
The Australian dollar (AUD) found support yesterday, as robust employment figures helped lift the currency.
A large increase in employment, with 64.1k jobs added in September, reduced the likelihood of a rate cut by year-end. The unemployment rate remained steady at 4.1%, while the participation rate climbed to a record 67.2%.
The Australian dollar will take movement today from key GDP and retail sales figures out of China.
New Zealand dollar (NZD) steady amid quiet data calendar
The New Zealand dollar (NZD) traded in a narrow range yesterday, with no significant economic data releases to influence movement.
In the absence of major domestic data, the currency’s performance was shaped by broader market trends and risk sentiment. As traders look ahead, NZD may continue to be guided by external factors, including key data from major trading partners.
Pound (GBP) licks wounds following UK CPI
The pound (GBP) was mixed yesterday as a lack of new data left GBP investors to dwell on Wednesday’s consumer price index.
While Sterling was able to rally from its lowest levels, the prospect of more interest rate cuts from the Bank of England (BoE) meant GBP failed to recoup the bulk of its post-inflation losses.
Today will see the release of key retail sales figures out of the UK. The pound may face pressure if there is an unexpected drop in consumer spending.
Euro (EUR) slips as ECB lowers borrowing costs
The euro (EUR) fell yesterday as the European Central Bank (ECB) delivered its third interest rate cut of the year.
Although the cut was expected, EUR still faced selling pressure as the ECB said the disinflationary process is ‘well on track’. In addition, a softer-than-expected final CPI reading contributed to EUR’s weakness.
Today, the common currency could remain subdued in the wake of the ECB rate cut and amid a lack of fresh Eurozone data.
US dollar (USD) mixed despite upbeat retail sales
The US dollar (USD) lacked a clear direction yesterday, with the ‘greenback’ trading in a wide range against its peers.
While a modestly risk-on market mood undermined the safe-haven currency, stronger-than-expected US retail sales growth boosted USD.
Later this afternoon, three Federal Reserve policymakers are due to speak. Could hints at ongoing interest rate cuts dampen USD’s appeal?
Canadian dollar (CAD) trends lower amid weak oil prices
The crude-linked Canadian dollar (CAD) softened against its stronger rivals yesterday as oil prices held near their lowest levels since the start of the month.
Canadian economic data remains thin on the ground today. Therefore, oil price dynamics may drive most movement in CAD
Data releases
16:00 GBP Retail Sales (Sep)
23:30 USD Fed Bostic Speech
00:00 USD Fed Kashkari Speech
02:10 USD Fed Waller Speech