Australian dollar (AUD) wavers as GDP unexpectedly slows
The Australian dollar (AUD) initially rose yesterday, with the currency shrugging off an unexpected slowdown in GDP, thanks to a risk-on market mood.
However, AUD faced mixed movement in the evening. The weaker-than-expected growth in the third quarter left the currency exposed to losses against stronger rivals.
Turning to today, the latest Australian trade figures are the focus for AUD investors. With Australia’s trade surplus expected to have widened in October, the ‘Aussie’ could strengthen.
New Zealand dollar (NZD) slips following brief risk-on rally
The New Zealand dollar (NZD) found some success yesterday amid the upbeat tone in markets, only to stumble in the evening as concerns about the New Zealand economy dampened NZD’s appeal.
New Zealand data remains in short supply today, likely leaving the ‘kiwi’ to trade on market risk appetite. Could an upbeat mood help NZD gain ground?
Pound (GBP) rises as services PMI revised higher
The pound (GBP) rallied yesterday, with Sterling managing to attract strong support after seemingly entering oversold conditions.
The British currency was further bolstered by the UK’s final services PMI, which showed a smaller-than-expected slowdown in activity and accelerating input cost inflation due to rising salaries.
UK data is thin on the ground today. As a result, we could see GBP exchange rates move without a clear direction.
Euro (EUR) capped by Russia concerns
The euro (EUR) rose against many of its peers yesterday, with the currency enjoying an upwardly revised Eurozone services PMI and its negative correlation with the weakening US dollar (USD).
However, EUR’s gains were limited in scope as recent hopes for a Russia-Ukraine peace deal were dampened by news that talks between Washington and the Moscow yielded little results.
A slight recovery in Eurozone retail sales in October could provide the euro with modest support today. EUR investors will also look to a speech from European Central Bank (ECB) Chief Economist Philip Lane for fresh impetus.
US dollar (USD) weakens amid Fed rate cut bets
The US dollar slid yesterday amid bets that Kevin Hassett – an ally of President Donald Trump – will almost certainly become the next Chair of the Federal Reserve in May 2026, potentially presiding over an acceleration in interest rate cuts.
A 32,000 decline in private employment in November added to USD’s woes. A weak labour market could prompt the Fed to cut rates faster than anticipated.
Looking ahead, the latest US initial jobless claims figure could impact USD today. An uptick in new benefits claims could add to worries about a slowing labour market, thereby pressuring the ‘greenback’.
Canadian dollar (CAD) choppy despite firmer oil prices
The crude-linked Canadian dollar (CAD) was volatile yesterday as rising oil prices and a falling US dollar pulled the currency in opposing directions.
Canada’s latest Ivey PMI is expected to show a slight acceleration in economic activity in November, which could help underpin the ‘loonie’.
Data releases
10:30 AUD Balance of Trade (Oct)
20:00 EUR Retail Sales (Oct)
23:30 USD Initial Jobless Claims (29/Nov)
01:00 CAD Ivey PMI (Nov)
01:00 EUR ECB Lane Speech