Australian dollar (AUD) undermined by tariff concerns
The Australian dollar (AUD) traded in a wide range through yesterday’s session, driven by heightened market uncertainty.
Investors remained skittish on Tuesday as markets continued to digest Donald Trump’s latest tariff threats.
Australia will publish its latest GDP figures later this morning, with the ‘Aussie’ poised to rise if domestic growth accelerated in line with forecasts in the third quarter.
New Zealand dollar (NZD) wavers amid mixed market mood
The New Zealand dollar (NZD) followed a similar trajectory to its Australian counterpart on Tuesday.
The escalation of trade tensions stoked risk-off sentiment across global markets, infusing volatility into risk-sensitive currencies like the ‘kiwi’.
Pound (GBP) flat amid persistent UK economic jitters
The pound (GBP) traded sideways during yesterday’s trading session, amid ongoing concerns over the UK’s economic trajectory.
These economic jitters were fuelled by the British Retail Consortium’s (BRC) latest retail sales data, which suggests retail activity may have slowed again in November.
A speech by Bank of England (BoE) Governor Andrew Bailey may offer direction to the pound later today. If he reaffirms the bank is taking a measured approach to future interest rate cuts, Sterling is likely to climb.
Euro (EUR) dented by political uncertainty
The euro (EUR) struggled to attract support on Tuesday amid the current French political uncertainty.
Prime Minister Michel Barnier is set to face a no-confidence vote later today, which could trigger a financial crisis in the Eurozone’s second-largest economy.
Looking ahead, the Eurozone’s latest services PMI may act as a headwind for the euro today as November’s finalised figures are expected to confirm a contraction in growth.
US dollar (USD) rebounds amid rise in job openings
The US dollar (USD) initially struggled yesterday as some cautious optimism kept a lid on the safe-haven currency.
USD exchange rates then rebounded later in the session as data showed US job openings rose more than forecast in October. Suggesting the US labour market is a little more resilient than previously feared.
The spotlight today is likely to be on the latest ISM services PMI. If November’s index reports another healthy expansion in US service sector growth, the US dollar is likely to strengthen.
Canadian dollar (CAD) buoyed by rising oil prices
The Canadian dollar (CAD) ticked higher on Tuesday. An uptick in oil prices helping to underpin the commodity-sensitive currency.
Notable Canadian data remains in short supply today, likely leaving movement in CAD tied to oil price dynamics. Will a continued rally help the ‘loonie’ to consolidate its recent gains?
Data Releases
10:30 AUD GDP (Q3)
19:00 EUR Services PMI (Nov)
19:00 GBP BoE Governor Bailey Speech
19:30 GBP Services PMI (Nov)
01:00 USD ISM Services PMI (Nov)