Australian dollar (AUD) slides as commodity prices fall
The Australian dollar (AUD) was initially volatile yesterday as a mixed market mood saw the risk-sensitive ‘Aussie’ waver.
However, AUD then began to weaken in the evening as falling commodity prices pressured the resource-linked currency.
Today, Australian data is thin on the ground. Therefore, risk appetite and commodity prices may continue to drive AUD movement.
New Zealand dollar (NZD) wobbles as risk sentiment shifts
The New Zealand dollar (NZD) also wavered lower yesterday amid the shifting market mood, although the ‘kiwi’ fared better than its Australian counterpart.
NZD may be on the back foot today following another gloomy manufacturing PMI earlier this morning. Elsewhere, risk appetite may drive the New Zealand dollar.
Pound (GBP) climbs as GDP beats forecasts
The pound (GBP) rose yesterday following better-than-expected UK GDP figures.
The British economy expanded 0.1% in the fourth quarter of 2024, rather than contracting 0.1% as expected, easing recession fears and dampening Bank of England (BoE) interest rate cut bets.
UK data is absent from the calendar today, which could leave Sterling to trade without a clear direction.
Euro (EUR) buoyed by Ukraine peace hopes
The euro (EUR) firmed against many of its rivals yesterday as the prospect of a peace agreement between Ukraine and Russia supported the single currency.
However, EUR trimmed its gains in the evening, with a larger-than-forecast contraction in Eurozone industrial production putting some pressure on EUR.
The latest estimate for Eurozone GDP growth in the fourth quarter could impact EUR today, particularly if it deviates from the first estimate. Otherwise, Ukraine news could determine movement in the euro.
US dollar (USD) dented by improving market mood
The US dollar (USD) initially fell yesterday as hopes for peace in Ukraine cheered markets and deprived USD of safe-haven flows.
The ‘greenback’ was then able to recoup losses against some weaker rivals in the evening, having seemingly entered oversold conditions.
Looking ahead, the latest US retail sales figures are in focus for USD investors. Could a contraction in sales last month see the US dollar stumble?
Canadian dollar (CAD) fluctuates in tandem with oil
The Canadian dollar (CAD) fluctuated yesterday as choppy oil prices impacted the crude-linked ‘loonie’.
Market-moving Canadian data remains thin on the ground today. Therefore, oil price movements and tariff concerns could keep influencing CAD.
Data releases
07:30 NZD Business NZ PMI (Jan)
20:00 EUR GDP Growth Rate (Q4)
23:30 USD Retail Sales (Jan)
00:15 USD Industrial Production (Jan)