Australian dollar (AUD) trims trade-inspired gains
The Australian dollar (AUD) initially rose yesterday as strong Chinese trade data reflected positively on the currency, thanks to the close trade ties between Australia and China.
However, the ‘Aussie’ slipped back in the evening as a deterioration in market risk appetite dampened AUD’s appeal.
Risk dynamics could drive movement in the Australian dollar again today. Could a prevailing risk-off tone see the currency stumble?
New Zealand dollar (NZD) uncertain amid shifting mood
The New Zealand dollar (NZD) wavered yesterday as a shifting market mood and lack of data left the ‘kiwi’ rudderless.
New Zealand data is absent from the calendar again today, leaving NZD at the mercy of market sentiment once more.
Pound (GBP) buoyed by BoE comments
The increasingly risk-sensitive pound (GBP) rose against its safer rivals yesterday amid the initially upbeat market mood.
Sterling then managed to hold on to these gains as sentiment soured, and recoup losses against riskier rivals, as Bank of England (BoE) policymaker Alan Taylor suggested that rates could be close to neutral.
In the session ahead, the focus is likely to fall on the UK’s GDP data for November. An expected recovery in growth could support Sterling, although there is a chance the data could miss forecasts and weigh on GBP.
Euro (EUR) wobbles amid US-Denmark talks
The euro (EUR) traded without a clear direction yesterday as Greenlandic and Danish officials travelled to the US for high-stake talks on the future of Greenland.
Hopes that cooler heads will prevail were offset somewhat by continued pressure from US President Donald Trump, who posted hawkish messages on social media ahead of the meeting.
Germany’s full-year GDP growth rate is due out today, with the data potentially driving EUR movement. If the Eurozone’s largest economy barely grew last year, the common currency could struggle to attract buyers.
US dollar (USD) struggles as Treasury yields fall
The US dollar (USD) was subdued yesterday, softening against stronger peers while wavering elsewhere, as falling US Treasury yields dragged on the currency.
USD was largely unmoved by some positive American data, including a larger-than-forecast rebound in retail sales in November, although this may have limited losses.
Looking forward, last week’s initial jobless claims figure could impact USD today. Will a forecast rise in claims put pressure on USD?
Canadian dollar (CAD) choppy despite higher crude prices
The crude-linked Canadian dollar (CAD) was volatile yesterday, as a rise in oil prices was offset by ongoing concerns over the continued deterioration in US-Canada relations.
CAD could remain choppy today, if geopolitical tensions and oil price movements continue to drive uncertainty.
Data releases
17:00 GBP GDP (Nov)
19:00 EUR German Full Year GDP Growth (2025)
23:30 USD Initial Jobless Claims (10/Jan)