Australian Dollar (AUD) Wavers as Markets Mood is Volatile
The Australian Dollar (AUD) dipped against several peers on Friday as trading sentiment was unsteady throughout the session.
Brexit negotiations, EU geopolitical tensions and disappointing US job figures all weighed upon market mood. Meanwhile, embattled Chinese property developer Evergrande managed to scrape together another loan payment – supporting AUD as a proxy for the Chinese economy.
A lack of AU data today means the ‘Aussie’ is likely to trade on external factors.
Pound (GBP) Rises as Brexit Talks De-escalate UK-EU Tensions
The Pound (GBP) found some support at the end of last week, as talks between the UK and the EU took a more cordial tone.
According to The Times newspaper, Brexit Minister Lord Frost intended to signal to the European Commission’s Maros Sefcovic in upcoming talks that London was ready to renew efforts to get a deal and enter intensive talks over the next few weeks.
Looking ahead, if negotiations proceed amicably the Pound might rise, on hopes an agreement may be reached to put an end to weeks of hostility between the UK and the EU.
Euro (EUR) Trends Down on Strained International Relations
Despite stronger-than-expected industrial production data from the Eurozone, the Euro (EUR) fell on Friday as tensions rose between the EU, Belarus and Russia.
A mounting migrant crisis at Belarus’ border with the EU raised concerns that Belarus was attempting to undermine the bloc’s security; following talk of sanctions being imposed, the Belarussian leader Alexander Lukashenko threatened to cut off natural gas supplies to Europe.
The Eurozone’s balance of trade is scheduled to print later today and may provide some impetus for EUR movement.
US Dollar (USD) Muted on Poor Jobs Data, Consumer Sentiment
The US Dollar (USD) fluctuated on Friday as two big data releases missed forecasts. JOLTS job openings were revealed to have fallen only marginally in September; meanwhile, a preliminary consumer sentiment reading missed expectations of a rise.
The University of Michigan’s consumer sentiment for the US fell to 66.8 in November – the lowest since 2011. The University attributes the fall to an escalating inflation rate and perceived lack of appropriate action.
Into today, the NY Empire State Manufacturing Index may influence trading, with a stronger reading in November likely to support the US Dollar.
Canadian Dollar (CAD) Slides on Softening Oil Prices
The Canadian Dollar (CAD) traded in a mixed range at the end of last week, as oil prices extended their decline and investors digested the Bank of Canada’s quarterly Senior Loan Officer Survey.
Updated information on the business-lending practices of major Canadian financial institutions may continue to influence CAD trading today.
New Zealand Dollar (NZD) Falters on Risk Sentiment
The New Zealand Dollar (NZD) was muted through Friday’s session as risk sentiment wavered and a lack of NZ data exposed the currency to losses.
Data Releases
Nov 15th 20:00 EUR Eurozone Balance of Trade (Sep) €6.5B
Nov 15th 23:30 USD NY Empire State Manufacturing Index (Nov) 20.5