Australian Dollar (AUD) Fluctuates in Mixed Market Mood
The Australian Dollar (AUD) initially stumbled on Friday as a selloff in equity markets saw investors shy away from the risk-sensitive currency.
The ‘Aussie’ made an attempt to bounce back at the start of the European trading session, before retreating again amidst considerable USD demand.
The start of this week will likely see AUD investors look to a speech by Reserve Bank of Australia (RBA) Governor Philip Lowe for fresh impetus. A hawkish tone could help to boost the ‘Aussie’.
New Zealand Dollar (NZD) Rocked by Uneven Trade
The New Zealand Dollar (NZD) also fluctuated at the end of last week as the mixed market mood infused volatility into the ‘Kiwi’.
Looking ahead, NZD exchange rates could come under pressure this week with the release of New Zealand’s latest trade figures as economists predict the nation’s trade surplus will have shrunk last month.
Pound (GBP) Slides on Cautious BoE Comments
The Pound (GBP) ticked lower on Friday following comments from Bank of England (BOE) Chief Economist Huw Pill.
Pill said that while more rate hikes are needed he is wary of the bank being too aggressive with its interest rate hikes and triggering a recession.
Turning to this week, the primary catalyst of movement in the Pound is likely to be the UK’s consumer price index. Will cost of living concerns see another bump in inflation push GBP exchange rates lower?
Euro (EUR) Gains Tempered by USD Strength
The Euro (EUR) traded with modest gains at the end of last week, with the currency attract support amidst a softer risk tone.
However, the upside in the single currency remained capped amid broad based USD strength.
The Eurozone’s preliminary PMIs will likely determine the direction of the Euro this week, with another robust expansion in the bloc’s private sector potentially helping to prop up demand for the single currency.
US Dollar (USD) Rallies on Hawkish Powell
The US Dollar (USD) closed last week on a positive note, firming against the majority of its peers amidst renewed Federal Reserve rate hike bets.
This followed comments from Fed Chair Jerome Powell, in which he said the ‘Fed is acutely focused on returning inflation to its 2% goal.’
With USD data thin on the ground this week its likely we will see movement in the US Dollar tied to market risk sentiment. Could another volatile week for equity markets underpin demand for the safe-haven ‘Greenback’?
Canadian Dollar (CAD) Subdued as Oil Prices Slump
The Canadian Dollar (CAD) was muted on Friday, with the commodity-linked currency struggling to attract support amidst a slump in market risk appetite.
Looking ahead, the primary focus for CAD investors this week will likely be on Canada’s own CPI figures. Will an acceleration of inflation buoy the ‘Loonie’?
Data Releases
Jun 20 09:10 AUD RBA Lowe Speech