Australian dollar (AUD) pressured by weak trade figures
The Australian dollar (AUD) retreated on Thursday, as data showed that Australia’s trade surplus narrowed in November.
The nation’s trade surplus fell to a three-month low amid a sharp decline in exports, driven largely by a 10.5% drop in exports to the US due to new tariffs.
Turning to today’s session, Chinese inflation figures may help underpin the ‘Aussie’ if another rise in price pressures eases deflation concerns in Australia’s largest trading partner.
New Zealand dollar (NZD) slides amid cautious trade
The New Zealand dollar (NZD) also came under pressure yesterday as concerns over recent US interventions in South America and the seizure of a Russian-linked oil tanker spooked investors.
Looking ahead, the ‘kiwi’ may be vulnerable to further losses if this downbeat mood persists.
Pound (GBP) struggles amid UK economic headwinds
The pound (GBP) weakened on Thursday amid a continued lull in impactful UK economic releases.
Sterling sentiment was also suppressed against mixed signals from the retail sector over the Christmas period, with many firms reporting that subdued consumer confidence left many households cautious about discretionary spending.
UK economic data remains in short supply today, likely leaving the pound to trade without a strong directional bias.
Euro (EUR) buoyed by strong German factory orders
The euro (EUR) firmed yesterday as EUR investors welcomed surprisingly strong factory orders data from Germany.
Order growth soared 5.6% in November and bolstered hopes that the Eurozone’s largest economy is emerging from a prolonged industrial slump.
The upside in the euro may be extended today, if Germany’s industrial production figures echo the strength seen in factory orders.
US dollar (USD) strengthens in risk-off trade
The US dollar (USD) appreciated on Thursday as geopolitical uncertainty drove investors toward safe-haven assets.
However, tempering the upside in USD was last week’s initial jobless claims report, which showed a rise in new unemployment claims.
Centre stage today will be the latest US payroll report. If December’s data points to a US labour market that continues to soften, it will likely bolster dovish Federal Reserve rate bets and pull the US dollar lower.
Canadian dollar (CAD) underpinned by rising oil prices
The Canadian dollar (CAD) trended broadly higher yesterday, with the commodity-linked currency catching bids amid a notable rise in oil prices.
However, these gains may be tested later today as local data is expected to report that Canada’s unemployment rate began to rise again in December.
Data Releases
17:00 EUR German Trade Balance (Nov)
17:00 EUR German Industrial Production (Nov)
20:00 EUR Retail Sales (Nov)
23:30 CAD Unemployment Rate (Dec)
23:30 USD Non-Farm Payrolls (Dec)
23:00 EUR German Inflation Rate (Dec)