Australian dollar (AUD) undermined by lacklustre Chinese data
The Australian dollar (AUD) got off to a soft start this week, following surprisingly weak Chinese economic data.
Softer-than-expected industrial production and retail sales figures from China reinforced concerns about slowing economic momentum in the region, dampening demand for AUD.
Today sees the publication of Australia’s latest consumer confidence figures. If sentiment continued to improve last month, it could help to underpin the ‘Aussie’.
New Zealand dollar (NZD) slides on RBNZ comments
The New Zealand dollar (NZD) slumped through Monday’s session after Reserve Bank of New Zealand (RBNZ) Governor Anna Breman pushed back on speculation the bank could hike interest rates in 2026.
Coming up, with domestic data in short supply, movement in the ‘kiwi’ today is likely to be driven by wider market trends.
Pound (GBP) stable ahead of flood of data
The pound (GBP) treaded water at the start of this week’s session as GBP investors braced for a busy week of UK data.
Over the next few days, the UK will publish PMI, inflation and retail sales data, with the Bank of England (BoE) also set to deliver its final interest rate decision of the year.
In the meantime, the UK’s latest jobs data may act as a headwind for the pound at the start of today’s European session amid a forecast rise in unemployment and cooling of wage growth.
Euro (EUR) steady as industrial production ticks up
The euro (EUR) traded sideways on Monday in the wake of the Eurozone’s latest industrial production figures.
Factory output improved in line with expectations in October, with production growth rising from 0.2% to 0.8%, easing concerns over the Eurozone’s recent manufacturing slump.
The focus for EUR investors today will be on the Eurozone’s latest PMIs. Economists forecast growth in the bloc’s private sector will have continued to accelerate this month, potentially providing a boost for the euro.
US dollar (USD) flat as markets brace for economic releases
The US dollar (USD) was in a holding pattern at the start of this week’s session, with investors erring on the side of caution ahead of several high-impact domestic economic releases.
The latest Empire State manufacturing index also limited USD demand, after December’s data printed well below forecasts.
Unsurprisingly, the spotlight today will be on the latest US payrolls data. If November’s data disappoints, it could bring forward bets for the next interest rate cut from the Federal Reserve and see the US dollar test new lows.
Canadian dollar (CAD) muted as inflation undershoots expectations
The Canadian dollar (CAD) was subdued on Monday, after Canada’s consumer price index fell short of expectations in November, with inflation holding at 2.2% against forecasts it would accelerate to 2.3%.
In the absence of any notable domestic data, movement in the ‘loonie’ is likely to be linked to oil price dynamics today. If oil prices continue to slide, CAD demand is likely to falter.
Data releases
09:30 AUD Consumer Confidence (Dec)
17:00 GBP Unemployment Rate (Oct)
19:00 EUR Composite PMI (Dec)
19:30 GBP Services PMI (Dec)
23:30 USD Non Farm Payrolls (Nov)