Australian dollar (AUD) dented by rising unemployment
The Australian dollar (AUD) fell yesterday after new data showed a rise in Australian unemployment last month.
The country’s jobless rate rose from 3.9% to 4% in December, driven in part by a fall in full-time employment. This fuelled Reserve Bank of Australia (RBA) interest rate cut bets and weighed on AUD.
Turning to today, Australian economic data is thin on the ground. As a result, market risk dynamics could drive the ‘Aussie’ as this week’s session comes to an end.
New Zealand dollar (NZD) slips amid souring mood
The New Zealand dollar (NZD) also stumbled yesterday, as a gloomy market mood dampened demand for the risk-sensitive ‘kiwi’.
This morning’s downbeat manufacturing PMI could keep NZD on the back foot today. Risk appetite will then likely drive most NZD movement through the second half of the session.
Pound (GBP) softens following disappointing GDP
The pound (GBP) stumbled yesterday after the UK’s latest GDP data missed market forecasts.
Although the UK economy recovered in November, GDP came in at a meagre 0.1%, below expectations for 0.2% growth.
This evening, the UK’s latest retail sales figures are due out. Could an acceleration in sales growth last month help GBP end the week on a positive note?
Euro (EUR) buoyed by risk-off mood
The euro (EUR) rose against some of its weaker rivals yesterday as a gloomy mood supported the safer single currency.
However, an uptick in the US dollar (USD) and the prospect of more interest rate cuts from the European Central Bank (ECB) maintained pressure on EUR.
Looking forward, the Eurozone’s finalised inflation figures are due out this evening. Any revisions to the preliminary figure could impact the single currency.
US dollar (USD) rises despite weaker retail sales
The US dollar firmed yesterday as a risk-off market mood provided USD with safe-haven flows.
Weaker-than-forecast US retail sales put a lid on the ‘greenback’ in the evening, with sales growth slowing to 0.4% in December. However, USD was able to hold on to its earlier gains.
Overnight, the latest US industrial production figures are out. Could a recovery in output last month support the US dollar?
Canadian dollar (CAD) dented by falling oil prices
The crude-linked Canadian dollar (CAD) struggled yesterday as a sharp decline in oil prices pressured the currency.
Oil price dynamics may continue to drive movement in the Canadian dollar today amid a lack of domestic data.
Data releases
07:30 NZD Business NZ PMI (Dec)
17:00 GBP Retail Sales (Dec)
20:00 EUR Inflation Rate (Dec)
00:15 USD Industrial Production (Dec)