Australian dollar (AUD) wavers amid mixed market mood
The Australian dollar (AUD) sought to close last week on a positive note, as an upbeat market mood helped to carry it higher against most of its peers through the Asian trading session.
However, these risk flows began to evaporate through the European session, leaving AUD exchange rates to fall back from their best levels.
Industrial data out of China will be a key focus for AUD investors at the start of this week. Any signs of a slowdown could act as a headwind for the ‘Aussie’.
New Zealand dollar (NZD) wobbles amid shifting investor sentiment
The New Zealand dollar (NZD) also fluctuated on Friday in response to the mixed market mood.
With NZD in short supply today, it’s likely movement in the ‘kiwi’ will remain tied to market risk dynamics.
Pound (GBP) undermined by profit-taking
The pound (GBP) ticked lower against the majority of its peers at the end of last week, with the currency running afoul of some modest profit-taking, following Thursday’s GDP-driven gains.
This appeared partly attributed to some caution ahead of today’s UK-EU summit in London.
The main priority of the summit is the signing of a new security and defence pact, but talks regarding a new trading relationship are also expected to feature. GBP investors may come away disappointed if progress is limited.
Euro (EUR) dented by dovish ECB comments
The euro (EUR) was subdued at the end of last week, following dovish comments from European Central Bank (ECB) policymaker Martins Kazaks.
Speaking on Friday, Kazaks suggested there is a case for at least a couple more interest rate cuts from the ECB.
Coming up, the euro may benefit from the UK-EU summit today if steps towards refreshing the trading relationship are made.
US dollar (USD) capped by downbeat consumer sentiment
The US dollar (USD) traded with modest gains the end of the last week, following the release of weaker-than-expected US consumer sentiment figures.
Given the recent focus on consumer morale and its potential links to US recession risk, the figures tempered demand for the ‘greenback’, despite the souring market mood.
Turning to the start of this week, USD investors will likely be on the lookout for any US trade developments. The announcement of any more deals could help to lift USD, while any more flip-flopping by US President Donald Trump could exert pressure on the US dollar.
Canadian dollar (CAD) flat as oil prices stall
The Canadian dollar (CAD) traded sideways on Friday as a lull in domestic data and stalling of oil prices left the ‘loonie’ without direction.
CAD exchange rates will likely continue to trade in tandem with oil at the start of this week, amid the continued absence of any notable data.