Australian Dollar Bolstered by Broad Slump in the US Dollar

Australian Dollar (AUD) Lifted by Drop in USD

The Australian Dollar (AUD) rallied during yesterday’s trading session as a broad slump in the US Dollar (USD) helped to revive market risk appetite.

This uptick in the ‘Aussie’ was also supported by talks between the US and China, as the two sides agreed to push forward trade and investment links.

If this positive market mood persists, we could see the Australian Dollar maintain its upward trajectory through the remainder of this week’s session.

Pound (GBP) Rebounds from Two-Week Low

The Pound (GBP) mounted a convincing recovery yesterday, with the currency managing to claw back the majority of Wednesday’s Brexit driven losses against the Euro and US Dollar.

However, this rebound was mostly down the weakness of its peers, with the lack of any underlying support potentially leaving Sterling vulnerable to dropping again. As coronavirus concerns continue to plague the currency.

Looking ahead, the Pound may hope to cling to its gains later this evening as the latest UK GDP figures are expected to report an acceleration of growth in April.

Euro (EUR) Undermined by ECB’s Tapering Reluctance

The Euro (EUR) weakened during the European trading session on Thursday, after the European Central Bank (ECB) remained dovish in its policy outlook, following its June policy meeting.

While the ECB was upbeat about the Eurozone’s economic outlook, President Christine Lagarde suggested that it is still too early to start discussing the bank’s exit from its massive PEPP stimulus programme.

In the absence of any notable UK economic releases today, we could see the fallout from the ECB policy decision continue to exert pressure on the Euro through the remainder of the session.

US Dollar (USD) Sinks Following Surge in Inflation

The US Dollar (USD) faltered overnight on Thursday, following the publication of the latest US consumer price index.

While the CPI figures revealed that domestic inflation soared to a dizzying 5% in May, USD investors were unconvinced it will be enough to prompt a policy rethink from the Federal Reserve, which has remained staunch in its belief that the rise in inflation is ‘transitory’.

Coming up, will an upbeat reading in the University of Michigan’s latest US consumer sentiment index help the US Dollar to close this week’s session on a positive note?

Canadian Dollar (CAD) Buoyed as Oil Prices Consolidate Above $70

The Canadian Dollar (CAD) ticked higher again on Thursday, with the appeal of the commodity-linked ‘Loonie’ being buoyed as WTI crude prices continued to climb, consolidating above $70 a barrel.

New Zealand Dollar (NZD) Strengthens on Retail Card Data

The New Zealand Dollar (NZD) firmed through yesterday’s trading session following on from stronger-than-expected electronic retail card spending figures, which indicated that consumer spending is more robust than expected in the second quarter.

Data Releases

Jun 11th 16:00 GBP GDP (APR) 2.2%
Jun 11th 16:00 GBP Industrial Production (Apr) 1.2%
Jun 11th 16:00 GBP Trade Balance (Apr) £-3.2bn
Jun 12th 00:00 USD Consumer Sentiment (Jun) 84

Mathew Andrews

mathew.andrews@torfx.com


Related