Australian dollar (AUD) tumbles on worrying employment data
The Australian dollar (AUD) faced notable selling pressure on Thursday, as Australia’s latest jobs report made for dire reading.
Bets for future interest rate cuts from the Reserve Bank of Australia (RBA) accelerated sharply as unemployment jumped to its highest levels since November 2021 and the number of Australians in full-time employment unexpectedly slumped.
Expect the ‘Aussie’ to remain under pressure today as AUD investors continue to digest what June’s abysmal jobs figures mean for fiscal and monetary policy.
New Zealand dollar (NZD) slips in cautious trade
The New Zealand dollar (NZD) also weakened through yesterday’s session as a cautious market mood suppressed risk demand.
In the absence of any notable domestic data, the ‘kiwi’ will likely remain highly sensitive to market risk dynamics through the end of the week.
Pound (GBP) climbs on mixed jobs data
The pound (GBP) strengthened on Thursday, despite a mixed UK jobs report, which showed unemployment rising and wage growth slowing in June.
The focus for GBP investors, however, appeared to be on the revision to May’s payroll figures, which were revised up from –109,000 to –25,000, helping to trim some of the more dovish Bank of England (BoE) rate cut bets.
Sterling may struggle to maintain this momentum today, as a lull in UK data will likely leave the direction of the pound to be determined by wider market trends.
Euro (EUR) undermined by transatlantic trade tensions
The euro (EUR) faced headwinds yesterday amid growing fears that the EU and the US will be unable to reach a trade deal before the 1 August deadline.
EUR investors fear a 30% tariff on all EU exports to the US could severely impact the Eurozone economy and push the European Central Bank (ECB) to provide more support.
Germany’s latest producer price index may act as a headwind for the euro today, as another slide in input prices is likely to weaken consumer inflation expectations and stoke ECB interest rate cut speculation.
US dollar (USD) extends recovery following Fed Powell scare
The US dollar (USD) enjoyed strong support yesterday, with the currency continuing to recover after President Donald Trump dismissed a report that he was moving to fire Federal Reserve Chair Jerome Powell.
Aiding the US dollar’s recovery were the latest US retail sales figures, which reported a larger-than-expected rebound in sales growth last month.
Looking ahead, the University of Michigan’s latest US consumer sentiment index could help the US dollar end this week on a high, if it reports another improvement in household morale.
Canadian dollar (CAD) buoyed by strengthening oil prices
The Canadian dollar (CAD) edged higher on Thursday, as the commodity-linked currency drew support from rising oil prices.
CAD data is in short supply today, likely leaving the ‘loonie’ to continue to track oil price movements.
Data Releases
16:00 EUR German PPI (Jun)
00:00 USD Consumer Sentiment (Jul)