Australian dollar (AUD) wavers amid mixed mood
The Australian dollar (AUD) traded sideways at the end of last week’s session as a cautious market mood stifled demand for the risk-sensitive currency.
AUD investors also remained wary in the wake of Thursday’s underwhelming employment data, as they continued to adjust their Reserve Bank of Australia (RBA) policy expectations.
Australia’s close economic ties with China are likely to shape the ‘Aussie’ at the start of this week, with upbeat Chinese economic data likely to have a positive impact on AUD.
New Zealand dollar (NZD) rangebound in cautious trade
The New Zealand dollar (NZD) wavered on Friday amid the subdued market mood.
This week kicked off with data showing that New Zealand’s services sector contracted for the 21st consecutive month in November and is likely to pile pressure on the ‘kiwi’.
Pound (GBP) retreats on lacklustre UK GDP
The pound (GBP) closed last week’s session on a sour note, as the UK’s latest GDP figures fell short of forecasts.
October’s month-on-month figures reported a shock 0.1% contraction in growth, stoking stagflation concerns and ‘nailing on’ an interest rate cut from the Bank of England (BoE) this week.
Turning to the start of this week, Sterling may remain subdued ahead of some high-impact UK economic releases later in the session.
Euro (EUR) flat amid Bulgaria Eurozone uncertainty
The euro (EUR) was left rangebound on Friday as the sudden resignation of Bulgaria’s government raised questions about the country’s entry into the Eurozone next month.
The resignation of Prime Minister Rosen Zhelyazkov comes as Bulgaria experiences a wave of street protests and is likely to see the newest member of the single currency project face its eighth election since 2021.
Eurozone industrial production figures may offer some direction to the euro at the start of this week, with an expected slowdown in factory output in October potentially sapping EUR demand.
US dollar (USD) rebounds from recent lows
The US dollar (USD) traded with modest gains on Friday, attracting support from price-conscious investors after sliding to fresh multi-month lows on Thursday.
However, the upside in USD was ultimately capped amid dovish bets on US rate cuts following the Federal Reserve’s interest rate decision earlier in the week.
The release of December’s Empire State manufacturing index could trigger a fresh drop in the US dollar at the start of this week, as economists forecast factory activity in New York State will have slowed this month.
Canadian dollar (CAD) steady despite softening oil prices
The Canadian dollar (CAD) held its ground at the end of last week’s session, despite expectations for a global oil surplus next year triggering another drop in crude prices.
Canada’s latest consumer price index will be in focus for CAD investors at the start of this week, with an uptick in inflation last month potentially helping to lift the ‘loonie’.
Data releases
07:30 NZD Services PMI (Nov)
20:00 EUR Industrial Production (Oct)
23:30 CAD Inflation Rate (Nov)
23:30 USD Empire State Manufacturing Index (Dec)