Australian Dollar Jumps to a One-Week High

Australian Dollar (AUD) Rises as Navarro Comments Taken ‘Wildly Out of Context’

The Australian Dollar (AUD) rallied on Tuesday, as markets were supported after White House trade advisor, Peter Navarro retreated on earlier comments that the Phase 1 trade deal between the US and China was ‘over’.

This sparked chaotic market movement but was soon calmed after Navarro said his comments were taken ‘wildly out of context’ and President Trump confirmed the deal was ‘fully intact’, sending the currency to a one-week high.

Looking ahead, the ‘Aussie’ could edge higher today if the risk-on mood continues and supports riskier assets.

Pound (GBP) Slides despite ‘One Metre Plus’ Rule

The Pound (GBP) edged lower during Tuesday’s session despite better than forecast British PMI surveys as the currency was mainly driven by the recent moves in risk appetite and the looming risk of Brexit. Meanwhile, Prime Minister Boris Johnson announced that pubs, restaurants, hairdressers and hotels will be able to reopen from 4 July in England. A ‘one metre plus’ rule will also be introduced which offered Sterling some support.

Looking ahead, the Pound could continue to struggle as investors continue to price in the risks of Brexit and shifting risk appetite.

Euro (EUR) Buoyed by French and German PMI Surveys

The Euro (EUR) made modest gains today after data showed Germany’s private sector activity picked up in June. The bloc’s largest economy saw its PMI composite jump to a four-month high as the economy began to dig itself out of a recession. Added to this, data from France revealed business activity returned to growth, boosting EUR.

The single currency could continue to edge higher if Ifo’s Business Climate data jumps higher than expected in June.

US Dollar (USD) Slumps as Risk Appetite Rallies

The US Dollar (USD) slumped during Tuesday’s session as risk appetite rebounded after White House trade advisor went back on earlier remarks that the trade deal between Washington and Beijing was ‘over’. Risk sentiment was also supported by better-than-expected US PMI surveys which showed the downturn in the world’s largest economy eased in June.

Looking ahead, traders will be looking to several speeches from Federal Reserve policymakers for further clues of any policy moves.

Canadian Dollar (CAD) Slides despite Rising Oil Prices

The Canadian Dollar (CAD) remained under pressure despite oil prices rising after US President Donald Trump soothed market nerves about US-China trade. Upbeat data from the Eurozone showing the downturn eased this month also supported oil prices, although this did little to boost CAD.

Looking ahead, the oil-sensitive ‘Loonie’ could receive a boost if oil prices continue to rise.

New Zealand Dollar (NZD) Rises Ahead of RBNZ Rate Decision

The New Zealand Dollar (NZD) edged higher during Tuesday’s session as risk appetite improved significantly.

Looking ahead, the ‘Kiwi’ could suffer losses following the Reserve Bank of New Zealand (RBNZ) interest rate decision. Traders will be looking for signs the bank is considering taking rates into negative territory after the economy suffered its worst contraction in 29 years during Q1.

Upcoming Data

24 June 13:00                     NZD                       RBNZ Interest Rate Decision                        0.25%

24 June 14:00                     NZD                       RBNZ Press Conference

24 June 19:00                     EUR                        German Ifo Business Climate (June)         85.1

25 June 03:30                     USD                       Fed Evans Speech

25 June 06:00                     USD                        Fed Bullard Speech

Louisa Heath