Australian dollar (AUD) stumbles despite positive data
A risk-off mood saw the Australian dollar (AUD) slip yesterday, despite stronger-than-expected domestic consumer and business confidence data.
However, AUD was able to recoup losses in the evening against some of its weaker rivals.
Turning to today, Australian data is thin on the ground. As a result, market risk dynamics might drive most AUD movement.
New Zealand dollar (NZD) wobbles amid anxious mood
The New Zealand dollar (NZD) wavered yesterday, although the ‘kiwi’ managed to creep higher against some of its peers despite a risk-averse mood.
Market sentiment may be the primary catalyst behind NZD movement today. Could a souring mood see the New Zealand dollar stumble?
Pound (GBP) slips following UK jobs data
The pound (GBP) stumbled at the start of yesterday’s European session after the UK unemployment rate leapt from 4% to 4.3%, higher than the forecast 4.1%.
Above-forecast wage growth cushioned GBP from steeper losses, although the British currency still trended lower overall.
In the absence of any impactful UK data today, Sterling could trade in a mixed capacity.
Euro (EUR) weakens as German sentiment declines
The euro (EUR) found itself on the back foot yesterday as Germany’s latest economic sentiment index fell more than expected.
Morale in the Eurozone’s largest economy deteriorated this month, due to fears of US tariffs on European exports and the collapse of the German coalition government.
Today, the common currency may face muted movement amid a lack of impactful Eurozone data.
US dollar (USD) extends post-election upside
The US dollar (USD) climbed yesterday as ‘Trump trade’ continued to boost the American currency’s appeal.
With the Republicans likely to win both chambers of Congress, President-Elect Donald Trump will have a clear path to enact tax cuts and tariffs. These measures could push up inflation, thereby forcing the Federal Reserve to slow its pace of interest rate cuts.
Looking forward, the spotlight is on the US consumer price index due out tonight. With American inflation forecast to have ticked higher last month, the ‘greenback’ may maintain a positive trajectory.
Canadian dollar (CAD) buoyed by rising oil
Rising oil prices lifted the crude-linked Canadian dollar (CAD) yesterday, while CAD’s positive correlation with USD also helped to support the currency.
Oil price dynamics could once again impact the commodity-linked ‘loonie’ today. If crude continues to climb, CAD may gain further ground.
Data releases
23:30 USD Inflation Rate (Oct)