Australian dollar (AUD) sinks on abysmal jobs data
The Australian dollar (AUD) faced a clear selling bias on Thursday, with the release of Australia’s latest jobs report.
July’s data showed the Australian economy unexpectedly shed 15,800 jobs, raising fresh doubts for further monetary tightening from the Reserve Bank of Australia (RBA) later in the year.
Australia’s latest PMI data may extend the AUD selloff this morning as consensus forecasts predict they will show a slowdown in private sector activity this month.
New Zealand dollar (NZD) buoyed by positive risk flows
The New Zealand dollar (NZD) maintained a bullish trajectory on Thursday, thanks to a continued improvement in market risk appetite.
However, the outlook for the ‘kiwi’ is less rosy today, as data is expected to show that New Zealand ran a trade deficit in July.
Pound (GBP) lifted by improving consumer confidence
The pound (GBP) accelerated against the majority of its peers yesterday amid signs that UK consumer confidence is on the rise.
Tempering these gains, however, was a rise in UK government borrowing costs as bond yields rebounded, following Wednesday’s drop.
Today sees the release of the UK’s latest retail sales and PMI data, with the pound poised to slide if they point to a slowdown across the services sector.
Euro (EUR) undermined by energy price concerns
The euro (EUR) struggled to catch bids yesterday in the absence of any notable Eurozone economic indicators.
EUR sentiment was also suppressed by revived concerns over the impact of higher energy prices on Europe’s industrial sector.
The Eurozone’s own PMIs will be in the spotlight for EUR investors today, with the euro potentially firming if they report another robust expansion of the bloc’s private sector.
US dollar (USD) slips as US debt tops $40tn
The US dollar (USD) remained on the defensive on Thursday, with USD exchange rates striking fresh multi-month lows.
USD investors appeared spooked by US debt concerns, after it was reported that US national debt has ballooned to $40tn for the first time on record.
Looking ahead, the US dollar may find some respite later today as the latest S&P PMIs are expected to point to continued resilience in the US private sector.
Canadian dollar (CAD) buoyed by rising oil prices
The Canadian dollar (CAD) trended broadly higher yesterday, supported by a continued rise in global oil prices.
Coming up, Canada’s latest retail sales data could drag on the ‘loonie’ later today, as economists predict a sharp slump in sales growth last month.
Data Releases
08:45 NZD Balance of Trade (Jul)
09:00 AUD Composite PMI (Aug)
16:00 GBP Retail Sales (Jul)
18:00 EUR Composite PMI (Aug)
18:30 GBP Composite PMI (Aug)
22:30 CAD Retail Sales (Jul)