Australian Dollar (AUD) Bolstered by Strengthening Market Mood
The Australian Dollar (AUD) found itself supported heading into the weekend as a strengthening market mood alongside a downside in the US Dollar (USD) pushed the ‘Aussie’ higher.
Whilst Australian continues to deal with its ongoing coronavirus situation, the announcement from the Australian government that the Moderna vaccine had been approved for use in the country, pushed investors to become more optimistic surrounding Australia’s economic recovery.
The start of this week will see Australian Dollar investors keeping an eye on the latest RBA meeting minutes.
Pound (GBP) Weakens on Absence of Economic Data
The Pound (GBP) firmed on Friday, with the currency clawing back some of its losses witnessed on Thursday.
There was no clear catalyst for the Pound’s rebound, but it came amidst the improving market mood and some positive UK coronavirus statistics.
A lack of economic data from the UK will domestic coronavirus developments continued to drive movement in Sterling today, as investors await tomorrow’s unemployment figures.
Euro (EUR) Gains Traction as US Dollar (USD) Sours
The Euro (EUR) was able to gain on the back of a weakening US Dollar (USD) at the end of last week’s session.
While German wholesale prices provided some support the single currency, the negative correlation between the Euro and US Dollar proved the main driver of movement in the Euro for much of Friday’s session.
A lack of economic data from the Eurozone will today see investors focusing on any coronavirus developments alongside keeping an eye on the strength of the US Dollar.
US Dollar (USD) Dips on Pullback in US Treasury Yields
The US Dollar (USD) found itself weakening during Friday’s session as a pullback in US treasury yields caused a downward trend in the ‘Greenback’.
Further undermining USD exchange rates was the publication of the University of Michigan’s consumer sentiment index, which printed at a near decade-low this month.
Movement in the US Dollar (USD) looks to be driven by market sentiment at the start of this week as US Dollar investors eye tomorrow’s retail sales figures.
Canadian Dollar (CAD) Dips on Slide in Oil Prices
Heading into the weekend the Canadian Dollar (CAD) dipped on the back of sliding oil prices, denting the appeal of the commodity-correlated ‘Loonie.’
New Zealand Dollar (NZD) Supported by Risk-Off Trade
The New Zealand Dollar (NZD) found itself supported during Friday’s session as risk-on paired with a better than expected NZ business PMI bolstered the risk-correlated ‘Kiwi’.
Data Releases
16th Aug 08:30 NZD Services NZ PSI (Jul) 58
16th Aug 22:30 USD NY Empire State Manufacturing Index (Aug) 30