Australian Dollar (AUD) Firms amid Upbeat Market Mood
The Australian Dollar was placed on the defensive yesterday as a rebound in the US Dollar (USD) dampened market risk appetite.
This risk-off mood was reinforced by ongoing trade tensions between Australia and China and fears that the spat could hurt Australia’s economic recovery.
Investors will be keeping an eye on the latest PMI figures from Australia today, as these could provide fresh support for AUD.
Pound (GBP) Supported by Fall in UK Government Borrowing
The Pound was subdued through the first part of Tuesday’s session, as Sterling sentiment was sapped by renewed Brexit concerns.
However, the Pound was able to temper its losses later in the session as the Confederation of British Industry (CBI) reported a stronger-than-expected rise in its order balance book in June.
Coming up, the UK’s latest PMI figures could lend some support to GBP exchange rates today, amidst forecasts for another heathy expansion in the UK’s service sector this month.
Euro (EUR) Rangebound amidst ECB Concerns
The Euro struggled to find momentum on Tuesday, with the single currency rangebound amidst concerns over the European Central Bank’s (ECB) monetary policy plans.
This followed reports from Reuters in which suggested that policymakers are still divided on their new inflation strategy.
Preliminary Markit PMI data from the Eurozone will be published later this afternoon and could add further support to the Euro if the figures continue to show a sustained economic recovery across the bloc.
US Dollar Buoyed by Yields
The US Dollar ticked higher through the first half of yesterday’s session, with a rebound in US Treasury yields helping the currency to recoup a good portion of its losses.
However, the ‘Greenback’ then settled into a narrow range though the second half of the European session as investors awaited a testimony from US Federal Reserve Chair Jerome Powell.
Though not as influential as the ISM PMI’s, this evening’s flash Markit PMI figures will give an indication into how the US economy is performing.
Canadian Dollar (CAD) Supported by Rising Oil Prices
The Canadian Dollar strengthened during yesterday’s session as oil prices rose following and the US Dollar weakened. Tomorrow’s retail sales figures from Canada could however cause the ‘Loonie’ to suffer if the data comes in at -5% as forecast.
New Zealand Dollar (NZD) Dented in Risk-Off Trade
The New Zealand Dollar (NZD) found itself faltering during yesterday’s session as risk-off trade sapped ‘Kiwi’ sentiment.
Upcoming Data
Jun 23rd 00:00 EUR Consumer Confidence Flash (Jun) -3.3
Jun 23rd 09:00 AUD Composite PMI Flash (Jun) 59
Jun 23rd 18:00 EUR Composite PMI Flash (Jun) 61
Jun 23rd 18:00 GBP Composite PMI Flash (Jun) 62.8
Jun 23rd 23:45 USD Composite PMI Flash (Jun) 67