Australian Dollar (AUD) Slides on Weak Home Lending Data
The Australian Dollar (AUD) suffered losses on Thursday after Australian data revealed that new lending by both owner occupiers and investors suffered the worst fall on record.
However, Prime Minister Scott Morrison said it was a ‘little premature’ to make calls on house prices or panic about a collapse in house prices. Added to this, risk appetite slumped after US jobless claims remained elevated for another week.
Looking ahead, the ‘Aussie’ could continue to suffer losses if risk appetite continues to deteriorate as traders head back towards safer assets.
Pound (GBP) Gains as Sunak Unveils Plans to Revive the Economy
The Pound (GBP) was able to make some gains on Thursday due to a delayed reaction to the British Chancellor’s plans to help support the economy.
Rishi Sunak announced a range of schemes aimed at reviving the economy and preventing an employment crisis. However, gains were limited by ongoing worries about Brexit as German Chancellor Angela Merkel said the EU should prepare for the possibility of a no-deal scenario.
Post-Brexit trade negotiations are likely to remain in focus again today as talks between London and Brussels continue.
Euro (EUR) Slides as German Exports Disappoint
The Euro (EUR) slumped during yesterday’s session as traders focused on disappointing data from the bloc’s largest economy.
German exports rose as demand picked up after lockdown measures were eased. However, exports did not rise as high as expected in May which highlighted consumption remained weak.
Today could see the single currency regain earlier losses if French and Italian industrial production data rebounds significantly in May.
US Dollar (USD) Gains as US Jobless Claims Remain at Extraordinarily High Levels
The US Dollar (USD) edged higher against a handful of its rivals on Thursday as risk sentiment deteriorated, and Covid-19 cases hit a record daily high in Florida.
The latest US jobless claims data revealed that weakening demand and the resurgence in coronavirus cases kept new applications for unemployment at extraordinarily high levels. While there was record job growth in June, it suggests the country’s labour market remains fragile.
Today’s US Producer Price Index (PPI) data could also weigh on market sentiment, which could support the ‘Greenback’.
Canadian Dollar (CAD) Struggles as Oil Prices Drop
The Canadian Dollar (CAD) struggled to make gains during Thursday’s session after oil prices dipped due to renewed concerns about coronavirus lockdowns in the US.
This outweighed any signs of a recovery in demand from the world’s largest oil consumer, and dampened CAD sentiment.
Looking ahead, the ‘Loonie’ could suffer some losses today if June’s unemployment data disappoints investors.
New Zealand Dollar (NZD) Mixed as Risk Appetite Deteriorates
The New Zealand Dollar (NZD) was able to make gains against the Australian Dollar and Euro but struggled against many of its rivals.
While risk appetite started to drop during yesterday’s session, the resurgence of coronavirus cases and downbeat US jobs data limited gains.
Looking ahead, the ‘Kiwi’ could be offered some support if June’s electronic retail card spending increases more than expected.
Upcoming Data
10 July 08:45 NZD Electronic Record Card Spending (June)
10 July 16:45 EUR France Industrial Production (May) 15.2%
10 July 18:00 EUR Italy Industrial Production (May) 15.1%
10 July 22:30 CAD Unemployment Rate (June) 11.9%
10 July 22:30 CAD Employment Change (June) 600K
10 July 22:30 USD PPI (June) 0.3%