Australian Dollar (AUD) Quiet amid Lack of Data
The Australian Dollar (AUD) was mixed as this week’s trade got underway, as a lack of economic data left the ‘Aussie’ without a clear direction.
Nevertheless, an upbeat market mood and last week’s Reserve Bank of Australia (RBA) interest rate hike kept AUD underpinned, with the currency holding near recent highs.
Turning to today’s trade, the latest consumer and business confidence reports are out. If they both remain stagnant, as expected, then the ‘Aussie’ Dollar could soften.
New Zealand Dollar (NZD) Undermined by Fall in Spending
The New Zealand Dollar (NZD) fluctuated during Monday’s trade as conflicting factors played on the ‘Kiwi’.
While a bullish sentiment lent the risk-sensitive currency support, an unexpected contraction in card spending worried NZD investors.
Today, New Zealand data is thin on the ground. Therefore, risk sentiment could drive most of the currency’s movement.
Pound (GBP) Slides amid Market Correction
The Pound (GBP) suffered a nasty market correction yesterday, with the UK currency falling sharply against many of its peers after hitting monthly highs.
Investors seemed to think Sterling hade been overbought after last week’s impressive rally. Furthermore, GBP bulls were unwilling to place aggressive bets ahead of high-impact UK data later in the week.
Looking forward, we could see the Pound stage a recovery today. Will an expected rise in wage growth boost Bank of England (BoE) bets, thereby lifting Sterling?
Euro (EUR) Wavers with USD Movement
The Euro (EUR) found initial success yesterday, with the single currency enjoying its negative correlation with a falling US Dollar (USD).
However, a recovery in USD later in the session saw EUR cede ground against some of its stronger peers.
EUR investors will today be looking to Germany’s latest ZEW economic sentiment index to provide fresh impetus. Another drop in investor morale could weigh heavily on the Euro.
US Dollar (USD) Bounces Back as Treasury Yields Tick Up
The initial downside in the US Dollar came as a risk-on market mood sapped the safe-haven currency’s appeal.
The ‘Greenback’ then managed to regain some ground in the evening as a rise in US Treasury yields lifted the currency.
The focus ahead for the US Dollar is tonight’s consumer price index. If inflation cools as forecast then USD could slump.
Canadian Dollar (CAD) Stumbles as Oil Prices Slide
The crude-linked Canadian Dollar (CAD) weakened against many of its rivals yesterday amid a sustained downside in oil prices.
With Canadian data still in short supply today, crude prices could continue to drive CAD exchange rates.
Data Calendar
Jun 13th 10:30 AUD Westpac Consumer Confidence Index (Jun) 81.5
Jun 13th 11:30 AUD NAB Business Confidence (May) 0
Jun 13th 16:00 GBP Unemployment Rate (Apr) 4%
Jun 13th 16:00 GBP Average Earnings (Apr) 6.9%
Jun 13th 19:00 EUR German ZEW Economic Sentiment Index -13.1
Jun 13th 22:30 USD Inflation Rate (May) 4.1%