Australian Dollar Firms on Weakening US Dollar

Australian Dollar (AUD) Firms amid US Dollar Resurgence

The Australian Dollar (AUD) traded in a mixed range for much of yesterday as a quieter US Dollar helped to bolster the ‘Aussie.’

More so, a continuing upbeat market mood helped to support the currency at the start of the week.

Australian Dollar investors will look towards the minutes from the Reserve Bank of Australia’s (RBA) latest policy meeting, with a hawkish tone likely to be supportive of AUD exchange rates.

Pound (GBP) Weakens on UK Lockdown Easing Delay

The Pound (GBP) weakened during yesterday’s session after it was announced that the UK would not be leaving lockdown restrictions as soon as first expected.

A rise in coronavirus infections and the delta variant of the virus now the dominant variant in the country prompted the delay in the UK’s lockdown easing.

Sterling could find support today if the UK’s latest employment report and accompanying wage growth figures print positively.

Euro (EUR) Supported by Pound and US Dollar Weakness

The Euro (EUR) was supported during yesterday’s European session as a broad weakness in the Pound and US Dollar helped to support the single currency.

Reinforcing this upside in EUR exchange rates was the publication of the Eurozone’s latest industrial productions figures, which beat expectations in April.

Today’s German inflation rate data release could provide further support to EUR with a forecast of 2.4% during May.

US Dollar (USD) Awaits Latest Federal Reserve Decision

The US Dollar (USD) was muted for much of yesterday’s session as investors await the latest Federal Reserve interest rate decision later in the week.

A more upbeat market mood also limited the US Dollar yesterday as investors headed towards more risk-correlated currencies.

Looking ahead, the US Dollar could face additional pressure during today’s trading session, as the latest US retail sales release is expected to report a slowing of sales growth last month.

Canadian Dollar (CAD) Steady on back of Rising Oil Prices

The Canadian Dollar was steady despite a worse-than expected manufacturing sales data yesterday as oil prices continue to increase supporting the commodity-correlated currency.

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 weakness in the US Dollar.

Data Releases

Jun 15th 11:30 AUD RBA Meeting Minutes
Jun 15th 16:00 EUR German Inflation Rate (May) 2.4%
Jun 15th 16:00 GBP Unemployment Rate (Apr) 4.7%
Jun 15th 16:00 GBP Wage Growth (Apr) 4.9%
Jun 15th 22:30 USD Retail Sales (Mar) -0.7%

Mathew Andrews

mathew.andrews@torfx.com


Related