Australian dollar (AUD) rallies on upbeat jobs report
The Australian dollar (AUD) enjoyed strong support yesterday, after Australian unemployment fell more than forecast in October.
The surprisingly strong jobs data came hot on the heels of remarks from Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser, and compounded hawkish RBA interest rate expectations.
The focus for AUD investors today is likely to be on China’s latest industrial production figures. Strong factory output last month is likely to result in robust demand for Australian exports and help to underpin the ‘Aussie’.
New Zealand dollar (NZD) fluctuates as card spending underwhelms
Trade in the New Zealand dollar (NZD) was mixed on Thursday, with the currency initially retreating in the wake of disappointing domestic card spending figures, before rebounding amid a positive shift in risk appetite.
Turning to today’s session, the ‘kiwi’ may extend its recovery on the back of positive manufacturing PMI figures.
Pound (GBP) dented by slowing growth
The pound (GBP) came under renewed pressure on Thursday as the UK’s latest GDP figures fell short of expectations.
The UK economy grew just 0.1% in the third quarter, boosting bets the Bank of England (BoE) will cut interest rates in December and placing more pressure on Chancellor Rachel Reeves ahead of her autumn budget.
UK data is in short supply today, but Sterling could be vulnerable to further losses linked to fiscal and political jitters.
Euro (EUR) firms on softer USD
The euro (EUR) ticked higher on Thursday, supported by its negative correlation with the US Dollar (USD).
However, these gains remained limited as the Eurozone’s latest industrial production figures fell short of expectations.
The European Commission is set to publish its latest economic forecasts later today. Will an upbeat outlook on growth help to extend the upside in the euro?
US dollar (USD) slips in risk-positive trade
The US dollar trended broadly lower through yesterday’s session as improving risk appetite sapped demand for the safe-haven currency.
The risk rally came as US President Donald Trump signed a funding bill to end the longest government shutdown on record.
Looking ahead, movement in the US dollar may be limited today as USD investors brace for a flood of US economic releases to be published in the coming days.
Canadian dollar (CAD) pressured by USD weakness
The Canadian dollar (CAD) was subdued on Thursday, as the ‘loonie’ was undermined by its positive correlation with the US dollar.
Looking ahead, CAD exchange rates may bounce back at the end of the week if oil prices continue to accelerate into the weekend.
Data releases
07:30 NZD Business PMI (Oct)
20:00 EUR GDP (Q3)
23:00 EUR EC Economic Forecasts