Australian Dollar (AUD) Stumbles Following Dovish RBA
The Australian Dollar (AUD) stumbled on Tuesday in the wake of the Reserve Bank of Australia’s (RBA) latest policy meeting.
While the RBA left its policy untouched this month, its hint that it may expand its bond buying programme in July, and reaffirming its commitment to maintain highly accommodative policy until at least 2024, weakened AUD exchange rates.
Looking ahead, will a slowing of Australian GDP in the first quarter of 2021 result in the ‘Aussie’ extending its losses today?
Pound (GBP) Undermined by Coronavirus Fears
The Pound (GBP) was on the defensive yesterday as GBP investors grew increasingly unnerved by suggestions that any further reopening of the economy could be delayed as the Delta variant of the coronavirus continues to spread throughout the UK.
These losses were also reinforced after the latest UK manufacturing PMI was revised slightly lower.
UK coronavirus developments will remain the primary focus for GBP investors today, with Sterling being vulnerable to any negative headlines.
Euro (EUR) Firms on Upbeat Data
The Euro (EUR) ticked higher against many of its peers during Tuesday’s session in response to some stronger-than-expected Eurozone data releases.
EUR investors welcomed the Eurozone’s latest manufacturing PMI and inflation figures as they printed above expectations in May.
Coming up, the Euro could face some headwinds later this afternoon as Germany’s latest retail sales figures are expected to report a sharp contraction of sales growth in April.
US Dollar (USD) Flat in Upbeat Trade
The US Dollar (USD) traded sideways during yesterday’s trading session as demand for the safe-haven currency was undermined amidst a bullish market mood.
This was partly brought about by the latest ISM manufacturing PMI after it reported a stronger-than-expected expansion of US factory growth in May.
Looking ahead, in the absence of any other notable data, USD investors are likely to look to a couple of speeches by Federal Reserve policymakers for fresh impetus today.
Canadian Dollar (CAD) Soars as Surging Oil Prices Offset Underwhelming GDP Figures
The Canadian Dollar (CAD) roared higher on Tuesday as demand for the commodity-linked ‘Loonie’ was turbocharged by a sharp jump in oil prices. This offset the publication of Canada’s first quarter GDP figures, which reported Canada’s economy had a slower-than-expected start this year.
New Zealand Dollar (NZD) Slips despite Bullish Mood
The New Zealand Dollar (NZD) initially strengthened yesterday in risk-on trade, but then failed to sustain these gains and fell back again by the end of the European session.