Australian Dollar (AUD) Weakens as Coronavirus Outbreak Worsens
The Australian Dollar (AUD) weakened during Monday’s session as the ongoing coronavirus outbreak across Australia limited the appeal of the ‘Aussie’.
In the absence of any fresh domestic data releases, investors instead focused on coronavirus developments, weaking AUD sentiment as New South Wales recorded a further 478 cases as further lockdown measures are imposed to battle the outbreak.
The ‘Aussie’ could struggle today if the latest Reserve Bank of Australia (RBA) meeting minutes reiterate the bank’s plans to start tapering its stimulus programme in September.
Pound (GBP) Rallies as Isolation Ends for Double-Vaccinated Brits
The Pound (GBP) rallied during yesterday’s session as isolation ends for those who have been fully-vaccinated in the UK.
The move in both England and Northern Ireland has left investors to become more optimistic surrounding the UK’s economic recovery from coronavirus, after it was previously stymied by the ‘pingdemic’.
Today all eyes will be on the latest unemployment rate figures from the UK for June, if unemployment continues to fall the Pound could push higher.
Euro (EUR) Lacks Direction on Absence of Economic Data
The Euro (EUR) lacked direction on Monday as an absence of economic data from the Eurozone did little to support the single currency.
More so, a strengthening US Dollar (USD) limited the appeal of single currency for much of the day as a result of the strong negative correlation between the pairing.
Today the latest GDP growth rate estimate from the Eurozone could provide much needed support to the Euro if the figures shows that the bloc’s economy expanded more than expected in Q2.
US Dollar (USD) Supported by Risk-Off Market Mood
The US Dollar (USD) started the week trending higher as a risk-off market mood strengthened the appeal of the ‘Greenback’.
This cautious mood came amidst a backdrop on underwhelming Chinese data as well as rising geopolitical uncertainty.
Overnight investors will be focusing on the latest retail sales figures from the US for July, retail sales are forecast to have declined -0.2% which could knock USD exchange rates.
Canadian Dollar (CAD) Weakens as Oil Prices Continue to Slip
The Canadian Dollar (CAD) failed to make any gains yesterday as oil prices slipped a further 2% as economic output in China fell on the back of a rise in coronavirus cases.
Without the support of any new Canadian economic data during today’s session, the Canadian Dollar may weaken further.
New Zealand Dollar (NZD) Dips on Weakening Market Mood
The New Zealand Dollar (NZD) dipped during Monday’s session as a weakening market mood did nothing to support the risk-correlated ‘Kiwi’.
Data Releases
17th Aug 16:00 GBP Unemployment Rate (Jun) 4.8%
17th Aug 19:00 EUR GDP (Q2) 13.7%
17th Aug 22:30 USD Retail Sales (Jul) -0.2%
17th Aug 22:30 USD Industrial Production (Jul) 0.5%