Australian Dollar (AUD) Weakens Following RBA Meeting Minutes
The Australian Dollar (AUD) trended through much of yesterday as the latest meeting minutes from the Reserve Bank of Australia (RBA) did little to support the Aussie.
The minutes revealed that the RBA believes it is ‘premature to consider ceasing’ its stimulus programme, which alongside a prevailing risk-off mood weakened the ‘Aussie’.
Australian Dollar investors will look towards tomorrow’s employment change data from Australia which could provide fresh support for AUD.
Pound (GBP) Weakens on UK Economic Recovery Concerns
The Pound (GBP) weakened during yesterday’s session after despite positive employment change figures from the UK.
Following the announcement from Prime Minister Boris Johnson that the UK’s current lockdown restrictions will be enforced for a further four weeks, investors have became more pessimistic in regards to the UK’s economic recovery.
Sterling could find support today if the most recent inflation rate data from the UK meets forecasts of 1.8%.
Euro (EUR) Firms on German Inflation Data
The Euro (EUR) firmed during yesterday’s European session as robust German inflation figures helped to keep the single currency appealing.
German inflation rose to 2.5% during May as much of the Eurozone’s largest economy lifted its strictest lockdown restrictions.
A lack of economic data from the Eurozone today could see the currency open to losses if the US Dollar benefits from a following the latest Federal Reserve interest rate decision.
US Dollar (USD) Awaits Latest Federal Reserve Interest Rate Decision
The US Dollar (USD) faced a setback during yesterday’s session as disappointing retail sales figures from the US tempered demand for the ‘Greenback.’
A more cautious market mood did however help to keep the US Dollar more appealing as investors await the latest Federal Reserve interest rate decision.
The Fed’s rate decision will be the main catalyst of movement in the US Dollar today and could see USD exchange rates strengthen overnight, if the Fed strikes a more hawkish tone surrounding the US economy.
Canadian Dollar (CAD) Weakens despite Rising Oil Prices
The Canadian Dollar struggled to attract support on Tuesday, with the ‘Loonie’ failing to capitalise on a healthy uptick in oil prices during the US trading session.
However, CAD exchange rates may rebound later this evening if domestic inflation rose in line with expectations last month.
New Zealand Dollar (NZD) Cautious on More Negative Market Mood
The New Zealand Dollar (NZD) spent much of yesterday’s session on the defensive, retreating against its peers in response to a more cautious market mood.
Jun 16th 16:00 GBP Inflation Rate (May) 1.8%
Jun 16th 22:30 CAD Inflation Rate (May) 3.6%
Jun 17th 04:00 USD Federal Reserve Interest Rate Decision 0.25%