Australian dollar (AUD) pressured by global growth fears
The Australian dollar (AUD) retreated through yesterday’s session as the latest rally in energy prices rattled markets.
As oil climbed back over $100 a barrel, fears of a global slowdown grew increasingly pronounced, leading investors to shy away from risk-sensitive assets like the ‘Aussie’.
In the absence of any notable domestic data, expect the Australian dollar to remain sensitive to market risk dynamics through the remainder of the session.
New Zealand dollar (NZD) stumbles amid souring mood
The New Zealand dollar (NZD) also fell victim to investor risk aversion on Thursday, despite an uptick in Reserve Bank of New Zealand (RBNZ) interest rate hike bets.
The publication of New Zealand’s latest manufacturing PMI may keep the pressure on the ‘kiwi’ today after reporting a slowdown in factory sector activity last month.
Pound (GBP) muted amid energy price uncertainty
The pound (GBP) was sidelined on Thursday by a lull in UK economic releases and the continued focus on global energy prices.
As oil and gas prices firmed, analysts speculated about the potential need for government support for energy bills later in the year and what this could mean for UK public finances.
While the UK’s latest GDP figures are expected to report an acceleration of growth at the start of 2026, any resulting upside in the pound may be limited as the data risks looking out of date amid the current energy crisis.
Euro (EUR) slips amid continued USD demand
The euro (EUR) trended broadly lower yesterday, pressured by rising energy prices and its inverse trade relationship with the US dollar (USD).
Both were linked to events in the Middle East as Iran stepped up its efforts to disrupt energy markets, with fresh attacks on infrastructure and shipping in the region.
Turning to today’s session, the Eurozone’s latest industrial production figures may offer modest support to the euro if they report a rebound in factory output across the bloc at the start of the year.
US dollar (USD) rallies amid fresh escalation in the Middle East
The US dollar (USD) strengthened through yesterday’s session as rising geopolitical uncertainty bolstered the appeal of the safe-haven currency.
These gains were then reinforced as US initial jobless claims unexpectedly fell to 213,000 last week.
Coming up, the Federal Reserve’s preferred inflation indicator, the core PCE price index, could bolster the US dollar if it rose as expected in January.
Canadian dollar (CAD) bolstered by oil price rally
The Canadian dollar (CAD) strengthened on Thursday, with the latest rise in oil prices underpinning demand for the commodity-linked currency.
These gains may be swiftly tested, however, as Canada’s latest jobs report is expected to show a rise in unemployment last month.
Data releases
07:30 NZD Business NZ PMI (Feb)
17:00 GBP GDP (Jan)
18:00 EUR Industrial Production (Jan)
22:30 CAD Unemployment Rate (Feb)
22:30 USD Core PCE Price Index (Jan)