Australian dollar (AUD) slips as commodity prices decline
The Australian dollar (AUD) had an uncertain start to this week’s session amid mixed Australian data, including a slump in corporate profits and strong retail sales growth.
The ‘Aussie’ then faced losses in the evening as falling commodity prices and a soaring US dollar (USD) piled pressure on AUD exchange rates.
Turning to today, risk appetite could drive the ‘Aussie’ dollar amid a lack of Australian data.
New Zealand dollar (NZD) pressured by stronger USD
The New Zealand dollar (NZD) also faced pressure yesterday amid the surge in USD, although the ‘kiwi’ managed to hold steady against some rivals.
Market-moving New Zealand data is also in short supply today, potentially leaving NZD exposed to shifts in the market mood.
Pound (GBP) dented by downbeat PMI
The pound (GBP) faced some pressure yesterday after the UK’s final manufacturing PMI was revised lower to show a larger contraction in activity.
However, Sterling held steady against some of its weaker peers despite the downbeat PMI.
Looking ahead, the UK calendar is quiet today. Therefore, GBP movement may be muted.
Euro (EUR) slides amid French political turbulence
The euro (EUR) dropped yesterday as political instability in France – the Eurozone’s second-largest economy – pressured the common currency.
French Prime Minister Michel Barnier used special constitutional powers to force his contested budget through the deeply divided National Assembly, triggering a no-confidence vote.
French political instability could continue to weigh on EUR today amid a lack of supporting Eurozone data.
US dollar (USD) rallies on fresh Trump tariff threats
The US dollar (USD) surged at the start of the week as markets reacted to fresh tariff threats from President-Elect Donald Trump over the weekend.
On his social media platform Truth Social, Trump said he would impose 100% tariffs on BRICS nations if they sought to challenge the US dollar with a global reserve currency of their own.
US economic data is thin on the ground today. As a result, the safe-haven currency may trade on risk appetite and speculation over the impact of Trump’s proposed policies.
Canadian dollar (CAD) buoyed by USD and rising oil
The Canadian dollar (CAD) rose yesterday, thanks to the currency’s correlations with both USD and rising oil prices.
With Canadian data absent from the calendar today, oil price dynamics could drive most movement in the ‘loonie’.