Australian Dollar (AUD) Drops as Poor Employment Data Limits Rate Hike Bets
The Australian Dollar (AUD) fell yesterday as employment figures indicated a slower rate of growth than predicted. Unemployment rose unexpectedly to 3.5%, whilst the economy added 33,500 jobs versus a forecast increase of 35,000.
The data also led to expectations of a more modest pace of interest rate hikes from the Reserve Bank of Australia (RBA) which weighed on the ‘Aussie’.
Industrial production and retail sales figures from China could boost AUD today if they rise as forecast.
New Zealand Dollar (NZD) Slides Despite Strong Q2 GDP Growth
The New Zealand Dollar (NZD) dropped on Thursday due to its positive correlation to the Australian Dollar (AUD). Major losses for the ‘Kiwi’ were limited by strong second quarter GDP growth figures overnight, however.
Today’s cooling of private sector growth could pull NZD lower if August’s Business PMI print as forecast.
Pound (GBP) Falls as Brexit Tensions Grow
The Pound (GBP) slipped yesterday amid a lack of significant data. Brexit-related headwinds weighed on the currency as the UK promised to continue suspending NI border checks.
Sterling was underpinned by Bank of England (BoE) rate hike bets, however. Investors are betting on a 0.5% hike from the central bank.
A predicted slump in retail sales could pull the Pound lower today if figures print as forecast.
Euro (EUR) Climbs as ECB Officials Signal Further Rate Hikes
The Euro (EUR) firmed on Thursday. Further gains for Ukrainian forces added to optimism surrounding the Euro.
EUR’s gains largely came after hawkish comments from European Central Bank (ECB) policymakers. ECB member Gabriel Makhlouf signalled that raising interest rates is ‘absolutely necessary’.
The final reading of Eurozone’s August inflation figures could bolster EUR if they’re revised higher as forecast.
US Dollar (USD) Boosted by Fed Rate Hike Bets
The US Dollar (USD) edged higher on Thursday as data releases bolstered bets on aggressive action from the Federal Reserve. An above-forecast increase in August’s retail sales provided evidence that the US economy remained resilient.
A surprise fall in initial jobless claims also added to rate hike bets. The drop to 213,000 indicated a tight labour market.
The US Dollar could see further gains today if Fed rate hike bets remain consistent.
Canadian Dollar (CAD) Tumbles as Oil Price Slump
The Canadian Dollar (CAD) slipped against most of its peers on Thursday. The commodity-tied ‘Loonie’ suffered as crude oil prices fell by nearly 1%.
With no significant data today, the currency is likely to be affected by any further fluctuations in oil prices.
Data Releases
Sep 16th 08:30 NZD Business NZ PMI (Aug) 52.5
Sep 16th 12:00 CNY Industrial Production (Aug) 3.8%
Sep 16th 12:00 CNY Retail Sales (Aug) 3.5%
Sep 16th 16:00 GBP Retail Sales (Aug) -0.5%
Sep 16th 19:00 EUR Inflation Rate Final (Aug) 9.1%