Australian Dollar Strengthens as Trade Surplus Increases

Australian Dollar (AUD) Gains Ground on Upbeat Trade Data

Yesterday, the Australian Dollar (AUD) initially strengthened on the back of surprisingly robust trade data.

Exports improved significantly on a monthly basis, leading to an expansion in Australia’s trade surplus in August. However, these gains were trimmed over the course of the session amid market readjustments.

The ‘Aussie’ may see renewed volatility during today’s session, should the Reserve Bank of Australia’s (RBA) Financial Stability Review paint a bleak picture of the Australian economy.

New Zealand Dollar (NZD) Boosted by RBNZ Bets

During Thursday’s session, the New Zealand Dollar (NZD) managed to strengthen against its peers amid bets that interest rates would remain higher for longer.

The Reserve Bank of New Zealand (RBNZ) stated on Wednesday that rates needed to remain restrictive. As such, investors are betting that the RBNZ won’t be cutting rates any time soon, yielding tailwinds for the ‘Kiwi’.

Turning to today, NZD may struggle to attract support due to a light data calendar.

Pound (GBP) Flounders amid Lack of Data

The Pound (GBP) lacked direction during yesterday’s trade amid a continued lack of data releases.

Analysis of the recent service sector PMI also led to pared back Bank of England (BoE) rate hike bets, capping GBP’s movement.

Macroeconomic releases remain in short supply for Sterling today, meaning GBP could continue to trade without a clear direction.

Euro (EUR) Wavers amid Mixed German Trade Data

The Euro (EUR) endured muted trade during yesterday’s session, owing to a mixed set of German trade releases.

While the Eurozone’s largest economy saw a forecast-beating expansion in the trade surplus, exports decreased sharply.

This afternoon, the latest German factory orders data is scheduled to print. Could a recovery in orders boost EUR?

US Dollar (USD) Ticks Down as Jobless Claims Rise

The US Dollar (USD) wavered yesterday as markets continued to respond to the data released overnight.

During the European and US sessions, the ‘Greenback’ began to trend lower. A slight uptick in initial jobless claims added to the pressure on USD.

September’s non-farm payrolls data is due to print tonight. With a fall in jobs created anticipated, additional signs of a slowdown in the US jobs market could hamper USD.

Canadian Dollar (CAD) Undermined by Sliding Oil Prices

Oil prices continued to fall yesterday, weighing heavily on the commodity-sensitive Canadian Dollar (CAD). The sharp pullback served to counteract a better-than-forecast reading in September’s Ivey PMI.

Tonight, Canada’s unemployment rate for September is scheduled to release. Economists anticipate an increase to 5.6%, which could weigh on the ‘Loonie’.

Data Releases

Oct 6th 10:30? ? ?AUD? ? ?RBA Financial Stability Review

Oct 6th 16:00? ? ?EUR? ? ?DE Factory orders (Aug)? ? ?1.8%

Oct 6th 22:30? ? ?CAD? ? ?Unemployment Rate (Sep)? ? ?5.6%

Oct 6th 22:30? ? ?USD? ? ?Non Farm Payrolls (Sep)? ? ?170,000

Oct 6th 22:30? ? ?USD? ? ?Unemployment Rate (Sep)? ? ?3.7%