Australian dollar (AUD) buoyed by RBA’s inflation warning
The Australian dollar (AUD) firmed on Thursday in response to remarks made by Reserve Bank of Australia (RBA) Assistant Governor Sarah Hunter.
Hunter warned that ‘sustained above-trend growth could fuel inflationary pressures’, signalling to AUD investors that the RBA is in no rush to resume its cutting cycle.
Australia’s latest PMIs could help extend the upside in the ‘Aussie’ this morning, with November’s preliminary figures expected to report an improvement in growth across the private sector.
New Zealand dollar (NZD) fluctuates amid uneven mood
Trade in the New Zealand dollar (NZD) was mixed yesterday, with the risk-sensitive currency tracking the ups and downs in market risk appetite.
In the absence of any notable domestic data, the ‘kiwi’ is likely to remain sensitive to wider market trends today.
Pound (GBP) sidelined by budget jitters
The pound (GBP) was broadly rangebound on Thursday as autumn budget uncertainty kept investors cautious throughout the session.
Sterling demand also remained suppressed amid an uptick in Bank of England (BoE) interest rate cut bets in the wake of Wednesday’s inflation print.
Coming up, the pound may struggle today, with UK PMIs forecast to report a moderation of private sector growth this month, while retail sales in October are projected to stagnate.
Euro (EUR) falls on weak consumer confidence
The euro (EUR) retreated through yesterday’s session, coming under pressure amid ongoing EU-China tensions and weak consumer morale.
The Eurozone’s latest consumer confidence index held at -14.2 in November, against forecasts for a modest improvement to -14.
Turning to today’s session, the Eurozone’s own PMIs could provide a boost for the euro if they point to resilience in the bloc’s private sector this month.
US dollar (USD) pressured by US jobs data
The US dollar (USD) stumbled on Thursday, following mixed US payrolls data. Payrolls spiked to a five-month high in September, but unemployment unexpectedly ticked higher, and payrolls in July were revised lower.
This stoked dovish Federal Reserve rate cut bets, although investors remained confident that a December rate cut remains off the table.
USD investors will look to the latest US S&P PMIs for fresh impetus today. While not as influential as the ISM releases, November’s preliminary figures could still weigh on the US dollar if they show private-sector activity slowed this month.
Canadian dollar (CAD) muted despite rebound in oil prices
The Canadian dollar (CAD) struggled to attract support yesterday, despite a reasonably strong rebound in oil prices following Wednesday’s selloff.
Looking ahead, Canada’s latest retail sales figures could provide support for the ‘loonie’ as we go into the weekend, if they report a rebound in sales growth last month.
Data Releases
08:00 AUD Composite PMI (Nov)
17:00 GBP Retail Sales (Oct)
19:00 EUR Composite PMI (Nov)
19:30 GBP Composite PMI (Nov)
23:30 CAD Retail Sales (Oct)
00:45 USD Composite PMI (Nov)