Australian Dollar (AUD) Dips amid Lockdown Fears
The Australian Dollar (AUD) slipped yesterday as Victoria prepared to enter a seven-day lockdown after a fast-spreading outbreak of coronavirus emerged in Melbourne.
As Australia’s second most populous states, AUD investors are concerned about the impact on the economy and uncertainty surrounding the length of the lockdown.
The Australian Dollar could continue to struggle amid lockdown concerns going into the weekend, although an improvement in market sentiment could limit AUD losses.
Pound (GBP) Supported by BoE Commentary
The Pound (GBP) was supported during yesterday’s session after commentary from Bank of England policymaker Gertjan Vlieghe hinted that UK interest rates could rise early next year.
Sterling’s gains have been limited however as coronavirus cases creep up in the UK as investors remain cautious over the Indian variant of the virus derailing the country’s roadmap out of lockdown.
Sterling could still be open to losses heading into the weekend due to a lack of notable economic data, and potential political uncertainty arising from the UK government’s handling of the pandemic.
Euro (EUR) Weakens on Disappointing German Consumer Confidence
The Euro (EUR) weakened during yesterday’s European session as disappointing German GfK consumer confidence for June and a resurgence in the US Dollar caused EUR to stumble.
Despite a rise in consumer confidence in the Eurozone’s largest economy, the indicator missed forecasts and remained in contraction at -7.
Today’s Eurozone economic sentiment indicator for May is expected to have risen to 112 points, above pre-pandemic levels, which could see the single currency head higher over the weekend.
US Dollar (USD) Struggles as Durable Goods Orders Fall
The US Dollar (USD) struggled during yesterday’s session after durable goods orders in April missed forecast, contracting -1.3% instead of rising 0.7% expected, and US GDP indicating a slight downward revision.
However, USD losses were limited by initial US jobless claims falling to a new pandemic low of 406,000, beating market expectations of 425,000.
Looking ahead, USD investors will look toward today’s US personal spending data for April which is expected to have risen 0.5%.
Canadian Dollar (CAD) Steady as Oil Prices Hold
The Canadian Dollar was steady yesterday as oil remained at $65 a barrel and a mixed US Dollar helped to bolster the ‘Loonie.’
New Zealand Dollar (NZD) Bolstered by Upbeat Market Mood
The New Zealand Dollar (NZD) spent much of yesterday’s session supported on the back of an upbeat market mood and the latest Reserve Bank of Australia’s (RBNZ) interest rate decision continuing to support the ‘Kiwi’.
May 28th 19:00 EUR EA Economic Sentiment Final (May) 112
May 28th 22:30 USD US Personal Spending (Apr) 0.5%
May 28th 22:30 USD US PCE Price Index MoM (Apr) 0.7%