Australian dollar (AUD) slips despite upbeat data
The Australian dollar (AUD) weakened yesterday, despite upbeat Australian trade figures and decent retail sales growth.
The downside came amid a souring market sentiment, which weighed on the risk-sensitive ‘Aussie’.
Risk appetite may continue to drive AUD today, amid a lack of Australian economic data.
New Zealand dollar (NZD) dented by risk-off mood
The New Zealand dollar (NZD) also fell yesterday as the gloomy market mood weighed on NZD.
Turning to today, the ‘kiwi’ could once again trade on market risk dynamics. If the mood remains downbeat, the New Zealand dollar could drop again.
Pound (GBP) slides amid bond market turmoil
The pound (GBP) faced ongoing selling pressure yesterday as the UK bond market selloff continued, with worries of low growth and higher debt rattling investors.
Calm returned to the gilt market in the evening, sparing Sterling from further losses. However, GBP remained down on the day.
With no UK economic data out today, investors may remain focused on UK bonds. Could more market panic see the pound extend its downside?
Euro (EUR) rangebound on mixed data
The euro (EUR) traded mostly sideways yesterday amid mixed data from the Eurozone, although it rose against its weaker peers.
While German trade and industrial data was stronger than expected, the latest Eurozone retail sales figure missed forecasts to show just 0.1% sales growth in November.
Today, economic data from the bloc is in short supply. Therefore, EUR movement may be muted.
US dollar (USD) firms amid gloomy trade
The US dollar (USD) traded with modest gains yesterday as a cautious market mood favoured the safe-haven currency.
However, USD investors were reluctant to place aggressive bets ahead of tonight’s potentially impactful payrolls data.
Looking ahead, the latest non-farm payrolls report is the focus for USD investors. Could decent job creation in the US boost the ‘greenback’ tonight?
Canadian dollar (CAD) buoyed by rising oil
The crude-linked Canadian dollar (CAD) rose against its weaker peers yesterday, thanks to a slight uptick in oil prices.
Oil price dynamics may drive CAD movement again today, due to a lack of Canadian data.
Data releases
23:30 CAD Unemployment Rate (Dec)
23:30 USD Non Farm Payrolls (Dec)
01:00 USD Michigan Consumer Sentiment (Jan)