Australian Dollar (AUD) Wavers amid Shifting Market Mood
Mixed trade coloured the Australian Dollar (AUD) yesterday, as a lack of clear data drivers left it vulnerable to market dynamics.
As such, the shifting risk appetite served to prevent the ‘Aussie’ from gaining much ground, but similarly provided cushioning.
This morning, the latest Australian private sector indexes are due to print. Slowdowns are forecast in both sectors, which could dent AUD over today’s session.
New Zealand Dollar (NZD) Firms on Intermittent Market Mood Trade
The New Zealand Dollar (NZD) zigzagged during yesterday’s trade, as the risk-sensitive ‘Kiwi’ was also impacted by the uncertain market mood.
However, upbeat trade data earlier in the day lent NZD support, keeping it underpinned.
Today, the ‘Kiwi’ could trade in tandem with the ‘Aussie’, owing to a lack of impactful data releases.
Pound (GBP) Unable to Capitalise on Bumper BoE Hike
Following a surprise 50bps hike from the Bank of England (BoE), the Pound (GBP) endured volatile trade over yesterday’s session as markets digested the move.
Despite the bumper rate rise, a bleak outlook for the UK economy prevented any solid strength. Higher interest rates could have dire consequences for the UK’s growth prospects, which worried investors.
This afternoon and evening, the latest snapshots of the UK retail, services and manufacturing sectors are due out. With all expected to show weakening activity, GBP could stumble.
Euro (EUR) Muted despite Consumer Confidence Uptick
Muted trade struck the Euro (EUR) on Thursday, despite a forecast-beating increase in consumer confidence.
Printing at -16.1, up from -17.4, the index proved uninspiring to investors. The common currency’s negative correlation with the US Dollar (USD) may have stifled potential tailwinds.
Looking forward, the Eurozone PMIs are also due out tonight. Much like other releases, a slowdown is forecast, which could weaken EUR.
US Dollar (USD) Firms despite High Jobless Claims
Yesterday saw the US Dollar gain strength, despite evidence of slack in the US labour market as jobless claims remained elevated.
Safe-haven flows appeared to support the ‘Greenback’, though the modestly risk-off mood only provided a limited upside.
Tonight, the latest private sector indexes are scheduled to print. Both services and manufacturing activity are forecast to slow, which may dampen USD demand.
Canadian Dollar (CAD) Climbs on Retail Recovery
The Canadian Dollar (CAD) firmed yesterday, as its close correlation to the US Dollar brought it support by proxy.
With the Canadian data drought set to continue, the ‘Loonie’ may want for directional trade during today’s session.
Data Releases
Jun 23rd 09:00 AUD Services PMI Flash (Jun) 50.1
Jun 23rd 09:00 AUD Manufacturing PMI Flash (Jun) 48.1
Jun 23rd 16:00 GBP Retail Sales (May) -0.2%
Jun 23rd 18:00 EUR Services PMI Flash (Jun) 54.5
Jun 23rd 18:00 EUR Manufacturing PMI Flash (Jun) 44.8
Jun 23rd 18:30 GBP Services PMI Flash (Jun) 54.8
Jun 23rd 18:30 GBP Manufacturing PMI Flash (Jun) 46.8
Jun 23rd 23:45 USD Services PMI Flash (Jun) 54
Jun 23rd 23:45 USD Manufacturing PMI Flash (Jun) 48.5