Australian dollar (AUD) falls as risk appetite fades
The Australian dollar (AUD) ended last week on the back foot as a souring market mood put pressure on the risk-sensitive currency.
Sliding commodity prices also weighed on the ‘Aussie’.
AUD exchange rates could be muted today, with investors potentially holding off on placing aggressive bets ahead of tomorrow’s Reserve Bank of Australia (RBA) interest rate decision.
New Zealand dollar (NZD) declines amid gloomy mood
The New Zealand dollar (NZD) also weakened at the end of last week, with the risk-off mood and softer commodity prices pressuring the ‘kiwi’.
With New Zealand data absent from the calendar today, market risk dynamics could drive NZD movement.
Pound (GBP) rises despite dovish BoE comments
The pound (GBP) rose against its weaker rivals on Friday, with GBP brushing off comments from Bank of England (BoE) policymaker Swati Dhingra.
In an interview with Bloomberg, Dhingra advocated cutting interest rates further. However, as she is known to be in favour of further cuts, her comments failed to dent the pound.
Looking ahead, a speech from BoE Deputy Governor Dave Ramsden could impact GBP. Any dovish comments could hurt the pound.
Euro (EUR) dented by downbeat German data
The euro (EUR) struggled against its stronger peers on Friday following an unexpected contraction in German industrial production in October.
However, EUR was able to gain against some of its weaker counterparts.
Eurozone data is in short supply today, potentially leaving EUR muted ahead of the European Central Bank (ECB) decision later in the week.
US dollar (USD) firms following payrolls print
The US dollar (USD) strengthened on Friday evening, despite some initial volatility, in response to the latest US labour market data.
Although the unemployment rate rose, as expected, a stronger-than-forecast non-farm payrolls print helped to lift USD.
Risk appetite may be the primary influence for the US dollar today amid a lack of American economic data.
Canadian dollar (CAD) plunges as unemployment jumps
The Canadian dollar (CAD) slumped on Friday after Canada’s unemployment rate leapt from 6.5% to 6.8% in November.
Canadian data is also thin on the ground today, potentially leaving the crude-linked Canadian dollar at the mercy of oil price dynamics.
Data releases
23:00 GBP BoE Ramsden Speech