Australian dollar (AUD) steady on robust jobs data
The Australian dollar (AUD) rallied yesterday as stronger-than-expected domestic employment figures bolstered expectations for more monetary tightening from the Reserve Bank of Australia (RBA).
However, these gains proved fleeting, with AUD exchange rates shedding support overnight as market risk appetite soured.
Australia’s latest PMIs could help attract fresh support for the ‘Aussie’ today, if they report another robust expansion of private sector growth this month.
New Zealand dollar (NZD) wobbles amid shifting market mood
The New Zealand dollar (NZD) fluctuated on Thursday, with the currency relinquishing its initial gains as rising tensions between the US and Iran sapped market risk appetite
Meanwhile, the publication of New Zealand’s latest trade figures could weigh on the ‘kiwi’ this morning after reporting a trade deficit in January.
Pound (GBP) slips amid BoE rate cut bets
The pound (GBP) traded on the back foot yesterday, pressured by mounting bets the Bank of England (BoE) will deliver a 25bps interest rate cut at its next meeting.
UK political jitters added to the headwinds facing Sterling, amid speculation that a Labour loss at next week’s Gorton and Denton byelection could be the final nail in the coffin for Keir Starmer’s premiership.
The GBP selling bias may remain in place today if the UK’s latest retail sales and services PMI further stokes BoE rate cut bets.
Euro (EUR) muted as consumer confidence remains downbeat
The euro (EUR) struggled to find any meaningful support on Thursday, following the publication of the Eurozone’s latest consumer confidence figures.
While morale showed signs of improvement this month, it fell short of forecasts, leaving the single currency on the defensive.
Today also sees the publication of the Eurozone’s own PMI data, with the euro potentially firming if private sector growth accelerated this month.
US dollar (USD) rises as jobless claims fall
The US dollar (USD) strengthened on Thursday amid fresh signs of US labour market resilience, following a larger-than-expected fall in US jobless claims last week.
Aiding the US dollar’s ascent was a rise in safe-haven demand amid reports that the US could launch military strikes on Iran this weekend.
The spotlight today will be on the latest US GDP print. Growth is expected to have slowed in the last quarter of 2025 amid the government shutdown. Will this reverse some of the US dollar’s recent gains?
Canadian dollar (CAD) buoyed by rising oil prices
The Canadian dollar (CAD) firmed on Thursday as an uptick in oil prices boosted the commodity-linked currency.
Canada’s latest retail sales figures could provide a boost for the ‘Loonie’ later this week if January’s figures report an uplift in consumer spending.
Data Releases
07:45 NZD Balance of Trade (Jan)
08:00 AUD Composite PMI (Feb)
17:00 GBP Retail Sales (Jan)
19:00 EUR Composite PMI (Feb)
19:30 GBP Services PMI (Feb)
23:30 CAD Retail Sales (Jan)
23:30 USD GDP (Q4)