Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
What’s happening: The Australian dollar rose sharply on Thursday after the release of data that reflected resilience in the labour market.
What happened: Investors shrugged off concerns around fresh tariff threats from US President Donald Trump.
The AUD/USD forex pair climbed on Thursday to reach the highest level it has hit this year.
Why it matters: The Australian dollar had been on an upward trajectory. On Wednesday, the AUD/USD rose after the release of positive economic data. The Westpac-Melbourne Institute Leading Economic Index for Australia rose slightly by 0.1% in January, after remaining unchanged in December 2024.
The index is an indicator of GDP growth in the country, which is now expected to expand by 2.2% by the end of 2025, accelerating from less than 1% last year.
Data released on Wednesday also showed that Australia’s seasonally adjusted wage price index rose by 3.2% year-over-year in the fourth quarter of 2024. Despite the increase, it marked a deceleration from the 3.6% rise recorded in the previous quarter.
Concerns around tariffs being levied by the US limited the gains for the Aussie on Wednesday. However, a strong jobs report released on Thursday boosted investor sentiment.
Although Australia’s unemployment rate rose slightly to 4.1% in January, from 4% in December, the economy added 44,000 jobs in the month, significantly beating market estimates of 20,000 job adds.
The report highlighted the resilience of the country’s labour market, which gives the Reserve Bank of Australia greater flexibility to keep interest rates higher for longer.
The AUD/USD climbed 0.88% to 0.6401 on Thursday. The forex pair has added around 1.86% over the past month and about 3.46% so far this year.
What to watch: Investors will continue monitoring comments by US President Donal Trump regarding his plans for new tariffs. Markets will also look out for signs of the trade war heating up between the US and China, as the latter is Australia’s largest trading partner.
Context: UK stocks declined on Thursday, extending losses for the third trading session.
Details: London stocks have been under pressure after US President Donald Trump announced 25% tariffs on all steel and aluminium imports. While the UK has been able to dodge Trump’s tariff threats so far, there is uncertainty around the US President’s next moves.
Data released on Wednesday showed that UK’s inflation rate accelerated sharply to 3% in January, from 2.5% in the previous month. The figure marked the highest inflation rate since March 2024 and came in above market expectations of 2.8%. The higher-than-expected inflation rate lowered speculations of another interest rate cut by the Bank of England.
The GfK Consumer Confidence Index for the UK improved to -20 in February, from -22 in the previous month. Although the figure came in better than market expectations, consumer confidence remaining in negative territory impacted investor sentiment.
Weak corporate earnings also impacted investor sentiment on Thursday. BAE Systems’ stock tanked 4.54% after the company announced a softer-than-expected outlook for 2025. Shares of Rolls Royce fell 3.77%, while stocks of Barclays, BP and Rentokil Initial slipped more than 2% each.
The FTSE 100 index fell by 0.57% to close at $8,662.97 on Thursday. The index has shed more than 1% over the past five trading days, although it is still up around 6% year to date.
What to watch: Investors await the release of economic data on retail sales (11:00 UAE Time) and PMI (13:30 UAE Time) from the UK today. The country’s retail sales had grown by 3.6% year-on-year in December, following a flat reading in the previous month. UK’s retail sales growth is expected to decelerate sharply to 0.6% in January.
The S&P Global UK Composite PMI, which improved to 50.6 in January from 50.4 in the previous month, is projected to slip to 50.5 in February.
Other Markets: US trading indices closed lower on Thursday, with the Dow Jones index, S&P 500 and Nasdaq 100 down by 1.01%, 0.43% and 0.47%, respectively.
US Secretary of State Marco Rubio said that his meeting with Russian officials needs to result in “identifiable outcomes” for President Donald Trump to meet with President Vladimir Putin. The news sent the RUB/USD pair higher in forex trading this morning.
Malaysia’s inflation rate remained unchanged at 1.70% in January. The figure coming in-line with market expectations lent support to the MYR/USD forex pair.
Japan’s annual inflation rate climbed to 4.0% in January, from 3.6% in the previous month. This being the highest reading since January 2023 sent the JPY/USD pair slightly lower in forex trading this morning.
New Zealand’s trade deficit narrowed to $486 million in January, from $1.088 billion in the same month last year, lending support to the NZD/USD forex pair.
South Korea’s Business Survey Index for the manufacturing sector showed an improvement to 65 in February, from 63 in the previous month. This being the second consecutive month of improvement in sentiment sent the KRW/USD pair higher in forex trading this morning.
Turkey’s tourist arrivals (12:20 UAE Time), France’s composite PMI (12:15 UAE Time), Germany’s composite PMI (12:30 UAE Time), Eurozone’s composite PMI (13:00 UAE Time), Italy’s inflation rate (13:00 UAE Time), Ireland’s wholesale prices (15:00 UAE Time), India’s foreign exchange reserves (15:30 UAE Time), Mexico’s GDP growth (16:00 UAE Time), Nigeria’s GDP growth (16:30 UAE Time), Canada’s retail sales (17:30 UAE Time) and US composite PMI (18:45 UAE Time) and existing home sales (19:00 UAE Time).
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
