Australian dollar (AUD) skyrockets as stellar jobs data stokes RBA rate hike bets
The Australian dollar (AUD) raced higher yesterday, striking new multi-month highs on the back of surprisingly strong domestic jobs data.
A 65,200-strong increase in employment resulted in an unexpected fall in the local jobless rate last month, which stoked bets for an imminent interest rate hike from the Reserve Bank of Australia (RBA).
The ‘Aussie’ may also extend these gains this morning, if Australia’s latest PMI figures point to a continued acceleration in private sector growth this month.
New Zealand dollar (NZD) bolstered by risk-on trade
The New Zealand dollar (NZD) also firmed on Thursday, supported by its positive correlation with the ‘Aussie’ and a broadly risk-positive market mood.
Meanwhile, the release of New Zealand’s quarterly CPI figures may underpin the ‘kiwi’ today, after reporting inflation accelerated again in the last three months of 2025.
Pound (GBP) falters despite upbeat data
The pound (GBP) trended lower against most of its peers through yesterday’s session, with GBP investors seemingly unfazed by upbeat UK economic releases.
These included data reporting only a modest increase in government borrowing in December, as well as a smaller-than-expected contraction in the UK’s distributive trades index this month.
Coming up, the UK’s latest retail and services PMI will act as the main catalysts for the pound today. If either release disappoints, it could leave Sterling to close the week on a sour note.
Euro (EUR) strengthens amid tariff relief
The euro (EUR) rallied on Thursday, amid relief in Europe that US President Donald Trump scrapped plans to impose fresh tariffs on European countries amid his push to acquire Greenland.
The minutes from the European Central Bank’s (ECB) latest policy meeting also underpinned EUR as some policymakers warned of downside risks to inflation, which may encourage the bank to leave rates on hold.
The focus for EUR investors today will be on the Eurozone’s own PMIs, with the euro potentially catching bids if there are more signs of recovery in the bloc’s private sector.
US dollar (USD) slides in risk-positive trade
The US dollar (USD) remained on the defensive yesterday as positive risk flows limited demand for the safe-haven currency.
This was despite data showing that US inflation remained sticky through November and that third-quarter US GDP was revised slightly higher.
Looking ahead, the US dollar may be able to recoup some of its recent losses later today if the latest S&P PMIs report an uptick in US private sector activity this month.
Canadian dollar (CAD) subdued as oil prices soften
The Canadian dollar (CAD) was muted on Thursday as sliding oil prices reduced the appeal of the commodity-linked currency.
Canada will publish its latest retail sales data towards the end of today’s session, with the ‘loonie’ likely to strengthen if sales growth continued to accelerate in December.
Data Releases
07:45 NZD Inflation Rate (Q4)
17:00 GBP Retail Sales (Dec)
19:00 EUR Composite PMI (Jan)
19:30 GBP Services PMI (Jan)
23:30 CAD Retail Sales (Nov)
00:45 USD Composite PMI (Jan)