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Commodity-related currencies have seen some big moves during the Asian trading session, with the Australian dollar moving within touching distance of the 0.8000 level against the US dollar and the Canadian dollar slipping below the 1.2500 handle against the greenback for the first-time in three-years.
The Australian dollar received a boost from better-than-expected capex data from the Australian economy and improving risk sentiment in financial markets. Australian capex data hit +3 percent on quarterly basis, which far outpaced expectations of a +1 percent headline number.
A strong recovery in WTI oil caused the Canadian dollar to fall below the 1.2500 level for the first-time in three-years. Overall US dollar weakness was also a contributing factor to the move lower in the USDCAD pair.
The NZDUSD pair has also got in on the act this morning and broke above the 0.7400 resistance level. The kiwi popped higher on the news that the New Zealand government required the RBNZ to include housing prices in its mandate. This was seen by market participants as increasing the prospects of less policy accommodation from the central bank.
The euro currency is trading at its highest level in four-weeks today. The buoyant mood in financial has probably prompted the move higher in the EURUSD pair, as no real news catalysts have been attributed to the move. Again, weakness in the US dollar index is a big factor in the rise back towards the 1.2200 handle here.
Sterling is also on the rise as United Kingdom Chancellor Rishi Sunak is apparently preparing a new economic plan to boost the UK economy after the countries comes out of the ongoing lockdown in the coming months.
Asian stocks are having a strong session as the positive vibes spill over from Wednesday’s US trading session. The Nikkei 225 has reversed yesterday’s losses, while US futures are set to open in positive territory.
Data Watch
The economic calendar in the European session is jammed packed with eurozone confidence data. European stocks and indices look set to advance this morning, with the FTSE 100, GER30, ESP 35, CAC 40, and ITA40 all looking to open with strong gains.
Looking to the US session, the main theme is high impacting economic data from the United States that touches on the real economy. Gross Domestic Product, PCE, Durable Goods Orders, and Pending Home Sales headline.
US Weekly jobs data will also be a big focus for traders and investors due to the obvious fact that this metric has been trending higher over recent weeks. Expect the markets mood to improve even more if we see US jobless claims dropping.
