Australian dollar (AUD) buoyed by positive risk flows
The Australian dollar (AUD) trended broadly higher yesterday, supported by an optimistic market mood.
The ‘Aussie’ also continued to benefit from the hawkish repricing of Reserve Bank of Australia (RBA) interest rate expectations in the wake of Wednesday’s stronger-than-expected inflation figures.
Looking ahead, in the absence of notable AUD economic data, movement in the Australian dollar is likely to remain tied to market risk dynamics.
New Zealand dollar (NZD) jumps on strong data
The New Zealand dollar (NZD) accelerated again on Thursday, this time on the back of stronger-than-expected domestic retail sales and business confidence figures.
Today’s session kicked off with the publication of New Zealand’s latest consumer confidence figures, where an uptick in morale this month looks to potentially extend the upside in NZD.
Pound (GBP) wobbles in post-budget trade
After striking a four-week high in the wake of Wednesday’s budget, the pound (GBP) was left treading water yesterday as investors continued to digest the UK government’s fiscal plans.
While the UK bond market remained broadly calm, there was brewing concern over Chancellor Rachel Reeves’s ‘back-loaded’ tax hikes, as well as rising expectations for a Bank of England (BoE) rate cut next month.
UK economic releases are in short supply today, potentially leaving movement in Sterling to continue to be influenced by budget analysts through the remainder of the week.
Euro (EUR) underpinned by ECB minutes
The euro (EUR) traded with modest support on Thursday as the minutes from the European Central Bank’s (ECB) October policy meeting confirmed unanimous support for keeping rates on hold.
This helped the euro counter Germany’s latest consumer climate index, which only reported a modest improvement in morale going into December.
Coming up, there are several German economic releases of note today, but the most impactful may be November’s preliminary CPI data. An uptick in inflation this month could help underpin EUR demand.
US dollar (USD) muted in holiday-thinned trade
The US dollar (USD) was subdued yesterday as the Thanksgiving holiday in the US resulted in thin trading conditions for the currency.
USD also remained suppressed amid renewed bets that the Federal Reserve will cut interest rates when it next meets in December.
While US markets reopen today, movement in the US dollar may remain limited amid a lull in US economic data.
Canadian dollar (CAD) flat as oil prices stall
The Canadian dollar (CAD) traded sideways on Thursday, with the commodity-linked currency struggling to attract support as oil prices flatlined.
Closing out this week is the release of Canada’s latest GDP figures. Could a rebound in growth in the third quarter help the ‘loonie’ to end the session on a positive note?
Data releases
07:00 NZD Consumer Confidence (Nov)
17:00 EUR German Retail Sales (Oct)
18:55 EUR German Unemployment Rate (Nov)
23:00 EUR German Inflation Rate (Nov)
23:30 CAD GDP (Q3)