Australian dollar (AUD) muted on lacklustre wage data
The Australian dollar (AUD) faced headwinds on Thursday, following the release of Australia’s latest wage price index.
While wage growth printed in line with expectations in the second quarter, earnings were revised lower in Q1.
All eyes will be on Australia’s latest employment report today. A sharp slowdown in employment growth last month could weigh heavily on the ‘Aussie’ this morning as it’s likely to spark a trimming of Reserve Bank of Australia (RBA) rate hike expectations.
New Zealand dollar (NZD) buoyed by positive PPI print
The New Zealand dollar (NZD) soared on Wednesday, building on its initial PPI-linked gains as market risk appetite improved.
Whether thr ‘kiwi’ is able to build on these gains today will depend on whether risk appetite continues to improve through today’s session.
Pound (GBP) subdued as CPI data fails to lift BoE rate bets
The pound (GBP) traded on the back foot against the majority of its peers yesterday, following the release of the UK’s latest consumer price index.
While July’s CPI figures reported UK inflation accelerated to a four-month high, this was not enough to shift expectations the Bank of England (BoE) will leave interest rates on hold through the remainder of 2026.
Euro (EUR) underpinned by USD weakness
The euro (EUR) trended broadly higher on Wednesday as it was supported by its strong negative correlation with the US dollar (USD).
However, the upside in EUR ultimately proved limited in the wake of comments from European Central Bank (ECB) Governor Christine Lagarde, who warned of the potential risks if the EU misses out on the AI revolution.
Coming up, the Euro may advance through today’s session if the minutes from the ECB’s latest policy meeting hint that policymakers are likely to purse a rate hike in the coming months.
US dollar (USD) pkunges on US bond buyback plans
The US dollar faced heavy selling pressure on Wednesday, after the US Treasury announced it would double the buyback of long-dated US debt.
The subsequent release of the minutes from the Federal Reserve’s July policy meeting saw the dollar consolidate its losses as they compounded bets the US central bank will keep interest rates on hold next month.
Coming up, the US dollar may remain under pressure today, if data shows that the US initial jobless claims rose again last week.
Canadian dollar (CAD) buoyed gy rising oil prices
The Canadian dollar (CAD) weakened against the majority of its peers on Wednesday, amid only a modest uptick in oil prices.
Looking ahead, the ‘loonie’ may faced headwinds today as Canada’s latest PPI figures are expected to report domestic inflation continued to moderate last month.
Data Releases
11:30 AUD Unemployment Rate (Jul)
21:30 EUR ECB Meeting Accounts
22:30 CAD PPI (Jul)
22:30 USD Initial Jobless Claims