Australian dollar (AUD) supported by strong trade figures
The Australian dollar (AUD) rebounded from an initial decline yesterday thanks to stronger-than-expected Australian trade figures.
A recovery in exports in October saw the country’s trade surplus grow to AU$5.95bn, its highest level since February. However, AUD stumbled in the evening.
Impactful Australian data is absent from the calendar today, potentially leaving the risk-sensitive ‘Aussie’ to trade on risk appetite.
New Zealand dollar (NZD) wavers in absence of data
The New Zealand dollar (NZD) also wavered yesterday, recovering from an initial dip before facing renewed headwinds in the evening as demand for the ‘kiwi’ dwindled.
With no New Zealand data due out today, market risk dynamics could drive NZD exchange rates.
Pound (GBP) buoyed despite lack of data
The pound (GBP) managed to gain ground against many of its peers yesterday, despite a lack of UK economic data.
Expectations that the Bank of England (BoE) may be slower to cut interest rates compared to other central banks seemed to lend Sterling support.
Today, market-moving UK data remains in short supply. As a result, Sterling may face muted movement.
Euro (EUR) rises thanks to USD correlation
The euro (EUR) climbed yesterday, with EUR shrugging off political jitters in France and some downbeat Eurozone data.
The common currency seemed to draw strength from its negative correlation with the US dollar (USD), as the latter currency struggled.
An expected recovery in German industrial production could support the euro this evening, if the data meets forecasts.
US dollar (USD) softens amid risk-on trade
The safe-haven US dollar weakened yesterday as an improving market mood sapped demand for the currency.
The latest initial jobless claims data also dented USD, as the figure jumped to a six-week high.
Looking at the session ahead, all eyes are on the latest US employment data due out tonight. Could a rebound in jobs creation boost the ‘greenback’?
Canadian dollar (CAD) unclear amid oil volatility
The crude-linked Canadian dollar (CAD) traded without a clear direction yesterday amid volatility in the oil market.
Coming up, the Canadian dollar could face selling pressure tonight. Canadian unemployment is expected to have risen in November.
Data releases
17:00 EUR German Industrial Production (Oct)
23:30 CAD Unemployment Rate (Nov)
23:30 USD Non Farm Payrolls (Nov)
23:30 USD Unemployment Rate (Nov)