Australian dollar (AUD) unable to benefit from export rebound
The Australian dollar (AUD) retreated on Thursday, with the risk-sensitive currency struggling to catch bids amid an increasingly cautious market mood.
This pullback in the ‘Aussie’ came despite Australia posting a surprise trade surplus in June amid a sharp recovery in exports at the end of the second quarter.
Looking ahead, the Australian dollar may be able to mount a recovery today if China’s own trade figures help to cheer markets.
New Zealand dollar (NZD) slips in cautious trade
The New Zealand dollar (NZD) also weakened yesterday amid the easing of market risk appetite.
In the absence of any notable domestic data, expect movement in the ‘kiwi’ to remain tied to market risk dynamics today, with further losses likely unless sentiment recovers.
Pound (GBP) rangebound in quiet trade
The pound (GBP) was trapped in a narrow range against most of its peers yesterday, with the currency struggling to find direction amid a lull in UK economic indicators.
This was compounded as stable conditions across the UK bond market also limited trade impetus in Sterling.
UK data remains in short supply today, leaving movement in the pound to be driven by wider market trends.
Euro (EUR) slides following shock slump in retail sales
The euro (EUR) faced headwinds on Thursday, on the back of mixed Eurozone economic data.
While Germany factory orders smashed expectations with a 3.1% expansion in June, this was attributed to temporary factors, which coupled with a shock decline in Eurozone retail sales over the same period, pulled the single currency lower.
The euro risks further losses today as subsequent data from Germany is expected to report a slowdown in export growth and industrial production at the end of the second quarter.
US dollar (USD) firms ahead of key payroll data
The US dollar (USD) traded with modest support yesterday, as growing doubts over a potential US-Iran ceasefire buoyed safe-haven demand.
The uptick in USD was then reinforced by the latest US jobs data, as initial jobless claims at the end of July held below 200,000 for the third consecutive week.
Closing out this week’s session is the publication of the latest non-farm payroll report. Could another weak US employment report sink bets for a Federal Reserve interest rate hike next month and spark a USD selloff?
Canadian dollar (CAD) steady amid uptick in oil prices
The Canadian dollar (CAD) held its ground on Thursday, as Brent oil climbed back above $80 a barrel.
Canada’s latest employment data could drag on the ‘loonie’ later today if July’s figures point to a slowdown in employment growth last month.
Data Releases
18:00 EUR German Trade Balance (Jun)
18:00 EUR German Industrial Production (Jun)
22:30 CAD Unemployment Rate (Jul)
22:30 USD Non-farm Payrolls (Jul)