Australian dollar (AUD) slips as investors turn cautious
The Australian dollar (AUD) ticked lower yesterday, amid a cautious shift in risk sentiment.
The souring market mood was primarily driven by a sharp rise in energy prices, which revived global inflation concerns.
Australia’s preliminary PMIs for October will be in focus for AUD investors today, with the ‘Aussie’ poised to extend its losses if private sector activity slows as forecast.
New Zealand dollar (NZD) undermined by soft inflation print
The New Zealand dollar (NZD) also came under pressure on Thursday as a weaker-than-expected third-quarter inflation print sapped Reserve Bank of New Zealand (RBNZ) rate hike expectations.
Looking ahead, the ‘kiwi’ faces potential headwinds today if market risk appetite continues to wane.
Pound (GBP) buoyed as Healey hints at budget business support
The pound (GBP) attracted modest support on Thursday, after Chancellor John Healey signalled that he will seek to ‘back business’ in his inaugural budget next week.
While Healey was vague on details, he acknowledged the challenges faced by companies in recent years and that the government wants to encourage entrepreneurs.
The publication of the UK’s latest retail sales and services PMI could sap Sterling sentiment today, if they point to a slowdown in consumer spending.
Euro (EUR) slides as French bond yields rise above 5%
The euro (EUR) continued to weaken on Thursday after French bond yields climbed to a fresh 24-year high.
The rise in borrowing costs places even more pressure on the Eurozone’s second-largest economy, with analysts starting to downgrade their growth expectations for 2026 and 2027.
Turning to today’s session, the euro may find some respite if the Eurozone’s own PMIs point to resilience in the bloc’s private sector.
US dollar (USD) bolstered by alarming spike in oil prices
The US dollar (USD) caught fresh bids yesterday as soaring oil prices unsettled markets and stoked demand for the safe-haven currency.
These gains were then reinforced by an unexpected fall in initial jobless claims last week.
While not as influential as the ISM releases, the latest S&P PMIs could underpin the US dollar at the end of this week’s session if they report that the US private sector continues to expand at a healthy pace this month.
Canadian dollar (CAD) underpinned by oil price surge
The Canadian dollar (CAD) appreciated on Thursday as the latest jump in oil prices reflected positively on the commodity-linked currency.
However, the ‘loonie’ may struggle to consolidate these gains today, as Canada’s latest retail sales figures are expected to report a sharp slowdown in consumer spending last month.
Data Releases
08:00 AUD Composite PMI (Oct)
16:00 GBP Retail Sales (Sep)
18:00 EUR Composite PMI (Oct)
18:30 GBP Composite PMI (Oct)
22:30 CAD Retail Sales (Sep)
23:45 USD S&P Composite PMI (Oct)