Australian dollar (AUD) rebounds from labour-data losses
The Australian dollar (AUD) closed last week’s session on a more positive note, as broad-based weakness in the US dollar (USD) helped to boost the appeal of the risk-sensitive ‘Aussie’.
However, AUD’s gains were capped somewhat, with the currency left damaged by Thursday’s underwhelming labour figures.
Turning to the start of this week, the focus for AUD investors will be on China’s latest GDP data, with an acceleration in growth potentially underpinning the appeal of the ‘Aussie’.
New Zealand dollar (NZD) soars in risk-positive trade
The New Zealand dollar (NZD) proved to be Friday’s top performer, with the risk-sensitive currency continuing to benefit from improving risk appetite.
Movement in the ‘kiwi’ will also likely be linked to the outcome of China’s latest GDP figures today, as a positive reading may help to reinforce recent risk flows.
Pound (GBP) climbs despite dovish tilt to BoE Bailey comments
The pound (GBP) pressed higher against the majority of its peers at the end of last week, with GBP investors seemingly unfazed by dovish remarks from Bank of England (BoE) Governor Andrew Bailey.
Speaking at the Institute of International Finance annual members’ meeting, Bailey suggested that evidence of second-round inflation has so far been ‘quite subdued’.
Turning to today’s session, Sterling may be left to trade in a narrow range as GBP investors brace for a stream of high-impact UK macroeconomic data coming later in the week.
Euro (EUR) subdued amid ongoing France uncertainty
The euro (EUR) drifted lower against most of its peers – apart from the US dollar – on Friday, as EUR sentiment continued to be weighed down by French fiscal concerns.
France’s debt burden shows no sign of easing as markets remain sceptical about the government’s ability to pass its 2027 budget.
Looking ahead, concerns over France’s debt crisis may continue to drive the euro at the start of this week amid the absence of any other notable Eurozone data.
US dollar (USD) sinks on Fed Warsh remarks
The US dollar continued to soften at the end of last week as investors almost completely priced out any chances of the Federal Reserve raising interest rates this month.
This followed comments from Fed Chair Kevin Warsh, who said that recent inflation had not altered his assessment of the US economy, in addition to refusing to outline a policy path for the US central bank.
Further losses may follow for the US dollar at the start of this week, assuming that risk flows remain broadly positive.
Canadian dollar (CAD) falters as oil prices dip
The Canadian dollar (CAD) was left on the defensive on Friday as a softening of oil prices dampened the appeal of the commodity-linked currency.
Canada’s consumer price index could strengthen the ‘loonie’ latest today, if an acceleration of inflation last month is seen as placing more pressure on the Bank of Canada (BoC) to raise interest rates.
Data Releases
22:30 CAD Inflation Rate (Sep)