Australian Dollar (AUD) Weakens amid Risk Averse Trade
The Australian Dollar (AUD) weakened on Monday as a risk-averse market mood dampened sentiment towards the ‘Aussie’.
However, AUD rates could have been underpinned by anticipation ahead of today’s RBA meeting minutes.
These minutes could bring strength to AUD, if they provide any hawkish indications of further tightening to come.
New Zealand Dollar (NZD) Falls despite Private Sector Recovery
Despite a recovery in New Zealand’s private sector indexes, the New Zealand Dollar (NZD) stumbled yesterday in risk-off trade.
The service sector index soared above forecasts for May, printing at 53.3, likely shielding the ‘Kiwi’ from further losses.
Risk appetite could drive the ‘Kiwi’ over today’s session, with a lack of data meaning the antipodean currency may be without direction.
Pound (GBP) Underpinned by Continued BoE Hike Bets
The Pound (GBP) saw muted trade on Monday, as a lack of data drivers prevented Sterling from gaining ground.
However, continued discussion over potential Bank of England (BoE) rate hikes likely underpinned GBP exchange rates, as markets remain expectant of additional tightening.
Interest rate hike bets are likely to keep Sterling aloft today, as investors anticipate Wednesday’s key inflation data.
Euro (EUR) Supported by July Hike Bets
As a safer investment, the Euro (EUR) strengthened against riskier assets on Monday. However, a lack of impactful data prevented EUR from gaining further ground.
European Central Bank (ECB) policymakers likely underpinned the common currency, however, with ECB’s Peter Kazimir stating a July hike was likely.
The Eurozone data calendar remains relatively light today, meaning bets on further hikes from the ECB could buoy the common currency.
US Dollar (USD) Trades Flatly as Markets Close for Juneteenth
The safe-haven US Dollar (USD) managed to make gains against riskier assets yesterday, due to a wavering market mood.
However, as the country observed Juneteenth, the ‘Greenback’ was unable to consolidate these gains as US markets were closed.
Fed Official James Bullard is due to speak tonight. As a notoriously hawkish member of the FOMC, his speech could bring strength to USD.
Canadian Dollar (CAD) Mixed as Oil Prices Fluctuate
The Canadian Dollar (CAD) gained ground against most major peers on Monday, as a recovery in oil prices buoyed the ‘Loonie’.
Oil prices dynamics may continue to act as CAD’s main driver today, due to a lack of impactful data releases.
Data Releases
Jun 20th 11:30 AUD RBA Meeting Minutes
Jun 20th 11:35 AUD RBA Bullock Speech
Jun 20th 16:00 EUR German PPI (May) -0.7%