Australian Dollar (AUD) Strengthens on Upbeat Employment Figures
The Australian Dollar (AUD) enjoyed strong support through Thursday’s session, following the publication of Australia’s latest jobs report.
A surprise drop in unemployment, coupled with stronger-than-expected employment growth, was seen as tipping the odds in favour of another Reserve Bank of Australia (RBA) rate hike next month and underpinned AUD sentiment.
With domestic data thin on the ground today, any movement in the ‘Aussie’ is likely to be tied to market risk appetite. Will a cautious mood see AUD exchange rates falter?
New Zealand Dollar (NZD) Slips in Bearish Trade
The New Zealand Dollar (NZD) slipped yesterday as softening market sentiment sapped demand for the risk-sensitive currency.
Coming up, the ‘Kiwi’ has the chance to rally this morning if the Business NZ PMI reports manufacturing activity continued to improve last month.
Pound (GBP) Steady amid Limited Data
The Pound (GBP) was mostly rangebound yesterday as a sparse data calendar left the currency without any strong directional bias.
At the same time, ongoing Bank of England (BoE) interest rate expectations helped to limit any losses in the Pound.
In the continued absence of any notable GBP data, expect to see Sterling sentiment continue to be driven by BoE rate speculation through the remainder of the week.
Euro (EUR) Bolstered by ECB Rate Hike
The Euro (EUR) strengthened in overnight trade, following the European Central Bank’s (ECB) latest interest rate decision.
In addition to raising interest rates by 25bps as expected, the ECB’s outlook was very hawkish, with President Christine Lagarde stating a July hike is very likely.
The Eurozone will publish its latest inflation figures later today. Will confirmation of a sharp deceleration of inflation last month limit the Euro’s upside potential?
US Dollar (USD) Relinquishes Post-Fed Gains
The US Dollar (USD) was initially buoyed on Thursday, following the Federal Reserve’s hawkish rate pause.
However, the ‘Greenback’ then reversed a good portion of these gains overnight as data showed US jobless claims remained elevated last week.
Closing out this week’s session will be the publication of the University of Michigan’s latest consumer sentiment index. Will an improvement in sentiment this month bolster the US Dollar?
Canadian Dollar (CAD) Steady as Oil Prices Rise
The Canadian Dollar (CAD) held its ground overnight on Thursday as an uptick in oil prices helped the commodity-sensitive ‘Loonie’ withstand any losses which may have stemmed from the currency’s positive correlation with the US Dollar.
Oil price dynamics are likely to continue to act as the main catalyst of movement in CAD exchange rates today, potentially strengthening the ‘Loonie’ if prices climb.
Data Releases
Jun 16th 08:30 NZD Business NZ PMI 49.9
Jun 16th 19:00 EUR Inflation Rate (May) 6.1%
Jun 17th 00:00 USD Consumer Sentiment (Jun) 60