Australian Dollar (AUD) Stumbles Following Dovish RBA
The Australian Dollar (AUD) retreated overnight on Tuesday, after it was announced that Victoria would be extending its lockdown by another week amidst a rise in local coronavirus cases.
This offset the publication of Australia’s latest GDP figures, which reported a stronger-than-expected expansion of growth in the first quarter and may have otherwise have bolstered the ‘Aussie’.
However, Australia’s latest trade figures could help to lift AUD exchange rates today amidst forecast for a large expansion in the country’s trade surplus in April.
Pound (GBP) Firms Following Boris Johnson’s Comments
The Pound (GBP) rallied against the majority of its peers yesterday, following some upbeat remarks from Boris Johnson regarding the potential reopening of the rest of the UK economy later this month.
While the PM said that the government will need some more time to make a decision, he suggested that there is currently ‘nothing in the data at the moment that means we cannot go ahead with step four’.
Coming up we may see the Pound rally later this evening, if the reopening of more of the UK economy in mid-May resulted in last month’s finalised services PMI being revised higher.
Euro (EUR) Slumps on Lacklustre German Data
The Euro (EUR) was placed on the defensive through yesterday’s trading session in response to Germany’s disappointing retail sales figures.
April’s figures reported a whopping 5.5% slump in sales growth, down from a healthy 7.7% expansion in March and much worse than the 2% contraction which had been predicted by economists.
Looking ahead, there may be a chance for the Euro to recoup some ground during today’s European trading session, should the Eurozone’s latest services PMI beat expectations.
US Dollar (USD) Bolstered by Rising Treasury Yields
The US Dollar (USD) struck higher during yesterday’s trading session, with the currency attracting investors amidst a rise in US Treasury yields.
The ‘Greenback’s gains were kept in check however, as dovish Federal Reserve rate expectations continued to hang over USD exchange rates.
In the spotlight today will be the latest ISM non-manufacturing PMI, which could send the US Dollar higher if US service sector activity continued to rise in May.
Canadian Dollar (CAD) Supported by Rising Crude Prices
The Canadian Dollar (CAD) remained resilient on Wednesday, with the oil-sensitive ‘Loonie’ continuing to find support as OPEC signalling of gradual lifting of production curbs continued to lend strength to WTI crude prices.
New Zealand Dollar (NZD) Slips as Risk Appetite Weakens
The New Zealand Dollar (NZD) fell back on Wednesday as a softening of market risk-appetite resulted in limited demand for the high-yield ‘Kiwi’.
Jun 3rd 09:00 AUD Services PMI (May) 58.2
Jun 3rd 11:30 AUD Trade Balance (Apr) AU$7.9bn
Jun 3rd 11:30 AUD Retail Sales (Apr) 1.1%
Jun 3rd 18:00 EUR Services PMI (May) 55.1
Jun 3rd 18:30 GBP Services PMI (May) 61.8
Jun 3rd 22:15 USD ADP Employment Growth (May) 650,000
Jun 3rd 22:30 USD Initial Jobless Claims (29/May) 390,000
Jun 4th 00:00 USD ISM Non-Manufacturing PMI (May) 63