Australian Dollar (AUD) Unable to Capitalise as Market Mood Sours
The Australian Dollar (AUD) failed to gain traction during Thursday’s session as a souring market mood limited the appeal of the ‘Aussie’.
Australia continues to struggle against its ongoing coronavirus outbreak as Canberra goes into a snap lockdown and Melbourne extends its own restrictions to combat a rise in coronavirus cases. It comes as New South Wales Premier Gladys Berejiklian brings in extra military resources to deter those breaking lockdown rules.
An absence of economic data from Australia could see AUD exchange rates susceptible to more losses throughout the day.
Pound (GBP) Shored Up as UK Economy Rebounds during Q2
The Pound (GBP) found modest support yesterday as preliminary second quarter UK GDP reported a strong rebound in UK economic growth.
With the quarterly growth rate meeting forecasts of 4.8%, confidence in the outlook of the UK’s economic recovery, offering the Pound a boost against many of its major rivals.
A lack of economic data from the UK today will see investors keeping an eye on any further coronavirus developments to drive movement in Sterling.
Euro (EUR) Loses Traction on Lacklustre Eurozone Industrial Production
The Euro (EUR) softened yesterday as the Eurozone industrial production figures showed a further decline of -0.3% during June.
The decline was driven by supply-chain issues as analysts at ING commented: ‘Supply chain hiccups due to input shortages continue to plague industrial production.’
German wholesale prices could drive movement in the single currency today, though more likely investors will keep an eye on the strength of the US Dollar (USD).
US Dollar (USD) Bolstered by Initial US Jobless Claims
The US Dollar (USD) picked up pace overnight as the latest initial US jobless claims figures from the week ending 7 August showed a continuing recovery in the US labour market.
More so, a souring market mood had provided further support to the ‘Greenback’ as global coronavirus cases surge.
A preliminary Michigan consumer sentiment index for August could provide further support to USD exchange rates heading into the weekend, if consumer morale improved in August.
Canadian Dollar (CAD) Mixed on Ongoing Oil Crisis
The Canadian Dollar (CAD) was mixed for much of Thursday’s session as sliding oil prices caused the commodity-correlated ‘Loonie’ to trade in a wide range.
New Zealand Dollar (NZD) Slides as Risk-Off Trade Limits ‘Kiwi’ Appeal
The New Zealand Dollar (NZD) slipped lower across the board in response to a weakening market mood during Thursday’s session.
Furthermore the announcement from the New Zealand Government that the country would not reopen their borders this year did little to support the ‘Kiwi’.
Data Releases
13th Aug 08:30 NZD Business NZ PMI (Jul) 60
13th Aug 16:00 EUR German Wholesale Prices (Jul)
14th Aug 00:00 USD Michigan Consumer Sentiment Prel (Aug) 81.5