- The Australian dollar did very little on Thursday, trading in a thin range against the greenback.
- The GBP and EUR were boosted by an in principle agreement between the UK and EU for an “ambitious, broad, deep and flexible partnership” in the post-Brexit era.
- Japanese markets are closed today. There’s also nothing on the economic calendar in Asia, likely ensuring a quiet start to trade on Friday.
The Australian dollar did very little on Thursday, meandering its way through the session.
Here’s the scoreboard at 8am AEDT on Friday.
AUD/USD 0.7249 , -0.0012 , -0.17%
AUD/JPY 81.91 , -0.17 , -0.21%
AUD/CNH 5.0191 , -0.0079 , -0.16%
AUD/EUR 0.6355 , -0.0022 , -0.34%
AUD/GBP 0.5628 , -0.0054 , -0.95%
AUD/NZD 1.0635 , 0.0012 , 0.11%
AUD/CAD 0.9564 , -0.0045 , -0.47%
With no major economic data released and US traders offline for Thanksgiving, the movements in the AUD/USD were kept to a minimum, trading in a thin range between .7235 to .7368 throughout the day.
The only big movement among the majors came from the British pound and euro which were provided a boost from the release of a Brexit Declaration setting out the future relationship between the UK and the European Commission.
“The UK and EU have agreed in principle a draft that pledges an ‘ambitious, broad, deep and flexible partnership’ but without the specific detail observers were seeking,” said David de Garis, Economist at the National Australia Bank.
“This was the document that would form the basis with a Withdrawal Agreement to provide trade and political clarity of a deal that it would get the requisite political support.
“[The document] raises as many questions as answers, with grave doubts that it would get support in the UK House of Commons.”
Despite the lack of clarity, it was enough to see the British pound pop higher in thin trade, cementing it at the top of the G10 leader board.
It also helped to drag the euro higher despite a steep fall in eurozone consumer confidence which fell to the lowest level since March 2017 in November and mixed reports on Italian budget negotiations with the European Commission.
Turning to the session ahead, it looks set to be another quiet one with Japanese markets closed for a public holiday and absolutely nothing on the economic radar in Asia.
Given the mix of thin, holiday-impacted trade and a lack of first-tier data releases, the performance of Chinese financial markets will likely dictate the direction of the Aussie.
Later in the day, highlights include flash manufacturing and services PMIs from the Eurozone and US, inflation and retail sales from Canada along with the second reading of German Q3 GDP.
While US markets will reopen following Thanksgiving, trade is likely to remain light as many investor opt for a long weekend.