Australian dollar (AUD) plunges on worrying jobs report
The Australian dollar (AUD) tumbled on Thursday in response to Australia’s latest jobs data.
November’s surprise contraction in employment, and the particularly sharp plunge in full-time positions, weighed heavily on the ‘Aussie’ as investors rethought their Reserve Bank of Australia (RBA) interest rate cut bets.
Domestic data is limited today, which may create an opportunity for AUD to recover if risk appetite improves.
New Zealand dollar (NZD) slides in tandem with AUD
The New Zealand dollar (NZD) also faltered yesterday, with the ‘kiwi’ being pulled lower by its positive correlation with the ‘Aussie’.
New Zealand’s latest PMI data looks to pile more pressure on NZD today, after reporting manufacturing activity slowed to a crawl last month.
Pound (GBP) undermined by dovish BoE bets
The pound (GBP) struggled to attract support yesterday as Sterling sentiment was weighed down by Bank of England (BoE) rate cut speculation.
Recent signs point to an increasingly sluggish UK economy, stoking bets the BoE will deliver multiple rate cuts in 2026.
Today sees the release of the UK’s latest GDP data. Growth is forecast to have rebounded in October, but only a modest recovery could place the pound on the defensive.
Euro (EUR) supported by USD weakness
The euro (EUR) ticked broadly higher on Thursday, as the single currency benefitted from its strong negative correlation with the US Dollar (USD).
This was compounded by the expected policy divergence between the European Central Bank (ECB) and its US counterpart next year.
In the absence of any market-moving Eurozone data, the euro is likely to be driven by wider market trends at the end of this week’s session.
US dollar (USD) slides following Fed rate cut
The US dollar struck new multi-month lows yesterday, as it remained under pressure from the Federal Reserve’s surprisingly dovish interest rate cut on Wednesday.
Extending those losses was a sharp increase in jobless claims last week, as new claims jumped to a three-month high of 236,000.
US economic data is in short supply today, potentially leaving the US dollar vulnerable to more dovish Fed bets.
Canadian dollar (CAD) supported by rising exports
The Canadian dollar (CAD) edged higher on Thursday as data showing a surprise uptick in Canadian exports in September helped to offset pressures stemming from falling oil prices.
With CAD data in short supply today, the ‘loonie’ could find itself vulnerable if oil prices continue to soften.
Data releases
07:30 NZD Business NZ PMI (Nov)
17:00 GBP GDP (Oct)