Australian dollar (AUD) unclear following mixed jobs report
The Australian dollar (AUD) was uncertain on Thursday following some mixed Australian jobs data.
Although the country’s unemployment rate printed below forecasts, weaker-than-expected employment growth stifled AUD’s upside potential.
Turning to today, domestic economic data is in short supply, potentially leaving the risk-sensitive ‘Aussie’ to be driven by market sentiment.
New Zealand dollar (NZD) recovers as risk appetite wavers
The New Zealand dollar (NZD) also saw mixed movement on Thursday amid a shifting market mood and stronger-than-forecast inflation data, although NZD managed to trend higher in the evening.
New Zealand data is also absent from the calendar today, leaving NZD at the mercy of market risk appetite.
Pound (GBP) rises against weaker rivals
The pound (GBP) trended higher against its weaker rivals on Thursday, with a slight improvement in the market mood during European trading hours helping to lift the increasingly risk-sensitive currency.
However, a lack of UK economic data ultimately capped GBP’s upside potential.
In the continued absence of British data releases today, Sterling could struggle to find a clear trajectory.
Euro (EUR) falls following ECB rate decision
The euro (EUR) faced pressure on Thursday as investors reacted to the European Central Bank’s (ECB) latest interest rate decision.
Although the bank’s 25bps rate cut was priced in by markets, warnings from ECB President Christine Lagarde about the impact of US tariffs on Eurozone growth dented EUR.
Today, a lack of data from the Eurozone could leave the single currency to be influenced by market risk dynamics and the US dollar (USD), with which the euro is negatively correlated.
US dollar (USD) mixed as market mood shifts
The US dollar fluctuated on Thursday as a changing market mood impacted the safe-haven currency.
In addition, uncertainty around US monetary policy added to the mixed movement. Federal Reserve Chair Jerome Powell indicated that US tariffs could make it harder to cut interest rates, thereby drawing the ire of US President Donald Trump.
Tonight, Fed policymaker Patrick Harker is due to deliver a speech. If he echoes Powell’s comments around inflation, USD could potentially rise amid fading bets on more Fed rate cuts.
Canadian dollar (CAD) slips despite rising oil
The Canadian dollar (CAD) softened slightly on Thursday, with the crude-sensitive currency unable to gain ground despite rising oil prices.
With market-moving Canadian data thin on the ground today, oil price movements could drive the commodity-linked ‘loonie’.
Data releases
23:30 USD Fed Harker Speech