Australian dollar (AUD) extends gains amid risk-on trade
The Australian dollar (AUD) ended last week’s session on strong footing, extending its gains from earlier in the week.
The upside came amid a prevailing risk-on mood, with markets increasingly convinced of an imminent interest rate cut from the Federal Reserve.
Turning to today, AUD may be muted ahead of tomorrow’s interest rate decision from the Reserve Bank of Australia (RBA), where investors will be attuned to any hints about the future path of monetary policy.
New Zealand dollar (NZD) firms as sentiment remains upbeat
The New Zealand dollar (NZD) ticked higher on Friday as a cheery market mood underpinned the risk-sensitive currency.
The ‘kiwi’ starts the week with little in the way of economic data. Therefore, market risk appetite could set the tone for the New Zealand dollar as this week’s session gets underway.
Pound (GBP) mixed amid lack of data
The pound (GBP) was driven primarily by market risk appetite on Friday, amid a lack of notable UK economic data.
This saw the increasingly risk-sensitive UK currency rise against safer peers but stumble against riskier rivals.
British economic data is thin on the ground through the start of this week’s session, potentially leaving the pound to trade without a clear trajectory.
Euro (EUR) stumbles despite positive GDP data
The euro (EUR) slipped against many of its rivals yesterday, despite an upward revision to Eurozone GDP growth in the third quarter.
The downside came amid a risk-on mood and growing concerns over simmering geopolitical tensions with Russia.
Germany’s latest industrial production figures are the focus for EUR investors today. An expected 0.4% contraction in output could weigh on the euro.
US dollar (USD) pressured by risk-on mood
The US dollar (USD) remained subdued on Friday, with USD wavering near monthly lows as optimistic investors sought out higher-yielding assets.
A stronger-than-expected consumer sentiment print helped cushion USD later in the session, although the ‘greenback’ still remained down overall.
American data is absent from today’s economic calendar, potentially subduing the US dollar ahead of the Fed decision on Wednesday.
Canadian dollar (CAD) jumps as unemployment falls
The Canadian dollar (CAD) leapt higher on Friday as unemployment in Canada unexpectedly fell from 6.9% to 6.5%, rather than rising to 7%.
Oil price dynamics could drive CAD movement today, amid a lack of Canadian economic data.
Data releases
17:00 EUR German Industrial Production (Oct)