Australian Dollar (AUD) Slips Despite Upbeat Data
The Australian Dollar (AUD) fluctuated through Tuesday’s trading session, initially rallying on the back of some upbeat domestic data, most notably the National Australia Bank’s index of business confidence, which jumped to a two-year high in November.
However, the ‘Aussie’ struggled to sustain these gains in overnight trade as a souring of market sentiment dampened demand for the risk-sensitive currency.
Coming up this morning, will a dip in Westpac bank’s latest consumer confidence index dent the appeal of the Australian Dollar?
Pound (GBP) Fluctuates Following Latest Brexit Headlines
The Pound (GBP) came under pressure yesterday morning after Boris Johnson warned that securing a Brexit trade deal is ‘’looking very, very difficult’.
However, Sterling recovered most of the ground lost later in the session after the announcement that the UK and EU had come to agreement regarding the implementation of the Brexit Withdrawal Agreement was seen as providing ‘positive momentum’ in trade talks.
Brexit headlines will no doubt continue to stoke volatility in GBP exchange rates today as Johnson prepares to meet with European Commission President Ursula von der Leyen for further Brexit talks later in the week.
Euro (EUR) Subdued as Q3 GDP Revised Lower
The Euro (EUR) trended narrowly on Wednesday, in the wake of a softer-than-expected Eurozone GDP reading, which saw third quarter growth revised down from 12.6% to 12.5%.
Helping prevent any losses on the back of the disappointing GDP figures was the latest ZEW surveys which reported economic sentiment in Germany improved this month amid the coronavirus vaccine optimism.
Meanwhile, the Euro may strengthen later in today’s session as Germany’s latest trade figures are expected to report an expansion in the domestic trade surplus in October.
US Dollar (USD) Firms in Downbeat Trade
The US Dollar (USD) made moderate gains through yesterday’s trading session, as demand for the safe-haven currency was underpinned by a fall in equity markets.
However, these gains were tempered by the releases of the NFIB Business Optimism Index, which reported that US business morale unexpectedly deteriorated in November.
Looking ahead, USD investors will look to the publication of the latest JOLTs job opening figures for fresh impetus later tonight, with a drop in openings potentially reinforcing concerns over the state of the US labour markets.
Canadian Dollar (CAD) Subdued as Oil Prices Remain Depressed
The Canadian Dollar (CAD) was left mostly rangebound on Tuesday, as the oil-sensitive ‘Loonie’ struggled to find support as WTI crude prices ticked lower.
Coming up, CAD investors will be focused on the latest Bank of Canada (BoC) rate decision later tonight. No policy changes are expected but how will the bank’s outlook for 2021 influence the Canadian Dollar?
New Zealand Dollar (NZD) Undermined by Gloomy Trade
The New Zealand Dollar (NZD) experienced volatility through yesterday’s session, as the risk-sensitive ‘Kiwi’ struggled to sustain its gains amidst the souring of market sentiment.