Australian Dollar (AUD) Boosted by Easing of China’s Covid Curbs
The Australian Dollar (AUD) was bolstered by a return of global risk appetite on Friday. Reports that China would be reopening its Hong Kong border also boosted the ‘Aussie’.
Gains for AUD were capped by Chinese Covid uncertainty, however. Global health authorities remained concerned that China may be underreporting its Covid death toll.
With no significant data for the Australian Dollar today, movement in the ‘Aussie’ is likely to be tied to shifts in risk appetite and news from China.
New Zealand Dollar (NZD) Pushed Higher by Risk-On Mood
The New Zealand Dollar (NZD) was boosted by a risk-on market mood on Friday. NZD also benefitted from its positive correlation to the Australian Dollar.
Today will see no significant data for the New Zealand Dollar, meaning that any changes in risk appetite will likely drive movement in NZD.
Pound (GBP) Wavers as House Prices Tumble
The Pound (GBP) initially slipped on Friday after UK house prices fell at their fastest rate since 2009. Falling by 1.5% in December.
However, an improving market mood helped Sterling to find its feet again by the end of the session.
The Pound will see no significant data today. Further industrial action may weigh on Sterling.
Euro (EUR) Drops Despite Core Inflation Rise
The Euro slipped against many of its peers on Friday. A drop in German factory orders took their toll on EUR sentiment.
Rising core inflation lent support to the Euro however, as markets continued to bet on hawkish action from the European Central Bank (ECB).
Looking ahead, if German industrial production is also shown to have underperformed in November the Euro could face an uphill battle this morning.
US Dollar (USD) Slips as Wage Growth Figures Disappoint
The US Dollar (USD) fell on Friday. Below-forecast wage growth for December pushed USD lower as it prompted investors to scale back Federal Reserve rate hike bets.
The USD selling bias was then reinforced by the publication of the ISM non-manufacturing PMI, after December’s index reported a shock contraction in the US service sector.
The US will see no data releases today, likely leaving movement in the US Dollar to be driven primarily by market risk appetite.
Canadian Dollar (CAD) Climbs after Unexpected Fall in Unemployment
The Canadian Dollar (CAD) firmed on Friday. CAD rallied following an uptick in crude oil prices, as well as a fall in domestic unemployment in December.
Looking ahead, the Canadian Dollar could find further support from PMI figures today if they rise as forecast.
Data Calendar
Jan 9th 17:00 EUR German Industrial Production (Nov) 0.1%
Jan 9th 20:00 EUR Unemployment Rate (Nov) 6.5%
Jan 10th 01:00 CAD Ivey PMI (Dec) 51