Australian dollar (AUD) plunges on worrying jobs data
The Australian dollar (AUD) tumbled yesterday, as Australia’s latest labour report showed the economy lost almost 40,000 jobs in September.
Coupled with the unemployment rate holding at a five-year high of 4.7%, the data raised fresh doubts that the Reserve Bank of Australia (RBA) will be confident enough to tighten monetary policy again this year.
In the absence of any notable domestic data, expect the ‘Aussie’ to be left to nurse its wounds today.
New Zealand dollar (NZD) buoyed by positive risk flows
The New Zealand dollar (NZD) trended broadly higher on Thursday, supported by an improvement in market risk appetite.
Coming up, the ‘kiwi’ may build on these gains today if the latest BusinessNZ PMI reports an acceleration in domestic manufacturing activity last month.
Pound (GBP) bolstered by GDP surprise
The pound (GBP) strengthened yesterday after the UK’s latest GDP figures surprised to the upside.
The unexpected expansion of growth in August was seen as further strengthening the case for the Bank of England (BoE) to raise interest rates at its next meeting, while also providing a little more fiscal buffer for Chancellor John Healey in his upcoming budget.
GBP investors will look to a speech by BoE Governor Andrew Bailey for fresh impetus today, with his remarks potentially building on Sterling’s gains if he reinforces BoE rate hike bets.
Euro (EUR) underpinned by USD weakness
The euro (EUR) enjoyed a much-needed reprieve on Thursday, as the single currency’s inverse trade relationship with the US dollar (USD) helped to arrest the recent EUR selloff.
However, the euro was only able to erase a small portion of its recent losses as France’s ongoing debt crisis continued to cast a long shadow over the currency.
The Eurozone will publish its finalised inflation figures for September today, but while these are expected to confirm price pressures have accelerated to a three-year high, they are unlikely to have a material impact on European Central Bank (ECB) rate expectations.
US dollar (USD) slides amid AI risk
The US dollar (USD) was pressured through yesterday’s session as a selloff across the AI sector spooked USD investors.
This saw the ‘greenback’ retreat from Wednesday’s year-to-date highs, despite US producer prices and consumer spending outpacing expectations last month.
A speech by Fed Chair Kevin Warsh will be in focus for USD investors today, as they look for any signals that an October hike may still be possible.
Canadian dollar (CAD) dented by cooling oil prices
The Canadian dollar (CAD) was subdued on Thursday as a pullback in global oil prices dampened demand for the commodity-linked currency.
Bank of Canada (BoC) Governor Tiff Macklem is also scheduled to speak today, with his remarks potentially weighing on the ‘loonie’ if he maintains a cautious outlook on policy.
Data Releases
07:30 NZD BusinessNZ PMI (Sep)
12:00 GBP BoE Governor Bailey Speech
13:30 USD Fed Chair Warsh Speech
14:15 CAD BoC Governor Macklem
19:00 EUR Inflation Rate (Sep)