Australian Dollar gains then reverses
30 September 2016 by News DeskAustralian Dollar then lost ground against US news and buoyed Fed interest rate hike projections.
Australian Dollar lost further ground to a firmer Sterling on Friday, according to currency specialists TorFX.
Overnight the Caixin China PMI for September printed at 50.1. A slight improvement on August’s result of 50.0 but not a strong enough figure to give the Australian Dollar much of a boost and the currency lost ground.
New Zealand Dollar (NZD) – Ongoing Brexit concerns left the Pound trending lower against the New Zealand Dollar before the weekend, with NZD also being boosted by a sizable increase in the NBNZ Business Confidence gauge.
Business Confidence climbed from 15.5 to 27.9 in September and helped the New Zealand Dollar record gains against the majority of its peers.
Australian Dollar gains then reverses
Pound Sterling (GBP) – The prospect of further easing from the Bank of England (BoE) left the Pound pressured again on Thursday, but the GBP EUR exchange rate recovered ground before the weekend on the back of a better-than-forecast GfK Consumer Confidence report. The gauge of UK sentiment had been expected to improve from -7 to -5 but actually climbed to -1.
Nationwide house price data also beat expectations. If today’s UK GDP report impresses, the Pound could extend gains against the Euro. The GBP EUR pairing achieved a high of 1.1602 early in the European session.
US Dollar (USD) – Better-the-expected US growth data boosted Federal Reserve rate hike expectations on Thursday and left the US Dollar trending in a stronger position against the majority of its currency counterparts.
The ‘Greenback’ held and extended gains against peers like the Pound and Euro on Friday and could push higher still if the afternoon’s US Personal Income and Spending reports keep the odds of a December rate hike high.
Euro (EUR) – Easing fears for Deutsche Bank and better-than-anticipated German inflation data helped the Euro firm as the end of the week approached.
The fact that the rate of consumer inflation accelerated at a faster-than-forecast pace in Germany means that the Eurozone’s own CPI figures could exceed expectations later today – a result which would lend the Euro further support. The Eurozone’s unemployment data is also likely to have an impact on EUR/GBP and EUR/USD trading. As it stands, the Euro is down slightly against both the Pound and US Dollar.
Canadian Dollar (CAD) – After gaining initially on the back of the OPEC news, the Canadian Dollar experienced a rather static trading session on Thursday. Today’s Canadian data includes GDP figures for July and the nation’s Raw Materials Price Index.
Disappointing results on either front could see the ‘Loonie’ give up some of its oil inspired gains before the close of the local session.
Disclaimer: This update is provided by TorFX, a leading foreign exchange broker, its content is authorised for reuse by affiliates.
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