Australian dollar (AUD) mixed despite strong commodities
The Australian dollar (AUD) ended last week’s strong session on unsteady ground.
While rising commodity prices supported the ‘Aussie’, a prevailing risk-off mood saw it slip against its stronger peers.
With Australian economic data absent from the calendar at the start of this week, risk appetite could influence the ‘Aussie’. Will an anxious mood weigh on AUD?
New Zealand dollar (NZD) undermined by risk-off mood
The New Zealand dollar (NZD) was also unsure on Friday. While NZD rose against its weakest peers, a souring mood saw the risk-sensitive ‘kiwi’ stumble against its other counterparts.
Today, NZD could continue to respond to this morning’s New Zealand trade figures. Elsewhere, risk appetite could drive movement.
Pound (GBP) slides on dire UK data
The pound (GBP) faced heavy pressure on Friday as British retail sales growth slumped by 0.7% in October, versus forecasts for a more modest drop of 0.3%.
In addition, the UK’s preliminary PMIs for November missed forecasts, with service sector activity unexpectedly stalling this month.
Looking ahead, a speech from Bank of England (BoE) Deputy Governor Clare Lombardelli could influence GBP. Will hawkish remarks help Sterling start the week on the front foot?
Euro (EUR) drops as private sector contracts
The euro (EUR) also took a tumble on Friday, with the Eurozone manufacturing and services PMIs both showing contracting activity this month.
In addition, Germany’s final GDP reading for the third quarter was revised lower, from 0.2% to 0.1%.
This evening, an expected decline in German business morale could put pressure on the euro.
US dollar (USD) firms amid downbeat trade
The US dollar (USD) enjoyed a strong end to the week as the risk-averse mood saw investors favour the safe-haven ‘greenback’.
A stronger-than-forecast US services PMI also lent USD support, with the preliminary score rising from 55 to 57 in November.
Turning to today, a lack of US data could leave the ‘greenback’ to trade on market risk appetite. Could a souring mood see the safe-haven currency gain ground?
Canadian dollar (CAD) climbs amid positive retail sales
The Canadian dollar (CAD) rose against most of its rivals on Friday thanks to another 0.4% expansion in Canadian retail sales in September and a stronger US dollar.
Canadian economic data is in short supply today. Therefore, oil prices may be the primary factor behind movement in the commodity-linked Canadian dollar.
Data releases
07:45 NZD Balance of Trade (Oct)
07:45 NZD Retail Sales (Q3)
19:00 EUR German Ifo Business Climate (Nov)
19:00 GBP BoE Lombardelli Speech