Australian dollar (AUD) mixed following RBA Bullock comments
The Australian dollar (AUD) wavered at the end of last week in the wake of comments from Reserve Bank of Australia (RBA) Governor Michele Bullock.
Bullock noted that while overall inflation is moving in the right direction, services inflation remains elevated.
Looking ahead, AUD investors are likely to keep a close eye on China’s upcoming trade data, with the ‘Aussie’ likely to firm if Chinese import growth strengthens.
New Zealand dollar (NZD) undermined by disappointing PMI data
The New Zealand dollar (NZD) was left muted through Friday’s session as the latest Business NZ PMI reported another contraction in New Zealand’s manufacturing sector last month.
Coming up, we could see political uncertainty linked to Sunday’s local elections infuse some volatility into the ‘kiwi’.
Pound (GBP) remains pressured by fiscal doubts
The pound (GBP) remained firmly on the defensive on Friday, capping off the UK’s currency’s worst week since the UK bond crisis at the start of the year.
The sustained Sterling selling pressure came amid ongoing UK fiscal anxiety and growing uncertainty over the potential contents of Chancellor Rachel Reeves’s autumn budget.
Turning to the start of this week, movement in the pound may be limited today as GBP investors await the release of the UK’s latest jobs report on Tuesday.
Euro (EUR) subdued as Macron holds crunch talks
The euro (EUR) was muted on Friday as French President Emmanuel Macron held crunch talks to find a new Prime Minister and bring an end to the country’s recent political chaos.
Macron met with the leaders of several political parties on Friday in advance of the President’s self-imposed deadline to install a new PM by the end of the week.
Eurozone economic data is in short supply at the start of this week, which may leave the single currency to trade without strong directional bias today.
US dollar (USD) flat amid the moderation of consumer confidence
The US dollar (USD) recent bullish run appeared to run out of steam at the end of last week, with the release of the University of Michigan’s US consumer sentiment index.
October’s index reported morale continued to deteriorate, albeit at a much more modest pace than forecast.
Amid the ongoing US government shutdown, it’s likely the US dollar will continue to be guided by broader market risk trends at the start of this week.
Canadian dollar (CAD) bolstered by upbeat jobs report
The Canadian dollar (CAD) rallied on Friday as data showed the Canadian economy added 60,400 jobs last month, significantly outpacing forecasts for a meagre increase of 5,000.
In the absence of any market-moving Canadian data, the direction of the ‘loonie’ at the start of this week is likely to be determined by oil price dynamics. If prices continue to slide, it’s likely to negatively impact CAD sentiment.