Australian Dollar (AUD) Dented by China GDP Downgrade
On Monday, the Australian Dollar (AUD) saw significant sell-off pressure due to its nature as a proxy currency for the Chinese economy.
With China’s GDP forecast downgraded, the global market mood appeared downbeat which prevented the risk-sensitive ‘Aussie’ from recovering.
Amid an absence of Australian economic data today, AUD could fall further if risk aversion persists.
New Zealand Dollar (NZD) Cushioned by Dip-Buying
Following last week’s sharp falls, dip-buying appeared to support the New Zealand Dollar (NZD) during yesterday’s trade.
However, the prevailing bearish mood in markets put a firm lid on the risk-sensitive ‘Kiwi’.
Today, NZD could be wanting for directional trade, as the New Zealand data drought continues.
Pound (GBP) Cushioned by BoE Rate Hike Bets
With the Pound (GBP) having an increasingly risk-sensitive nature, the gloomy market mood weighed on sentiment towards GBP yesterday.
Sterling was cushioned by persistent interest rate hike bets during Monday’s trade, preventing further losses.
Due to a lack of data on the calendar, Sterling could struggle for clear support during today’s session.
Euro (EUR) Edges Up despite German Economic Anxiety
The Euro (EUR) initially slipped at the start of yesterday’s European session after German business sentiment fell more than forecast.
However, EUR was eventually able to climb higher against some of its peers thanks to hawkish European Central Bank (ECB) bets.
This evening, a speech from ECB President Christine Lagarde could drive the Euro. If she strikes a hawkish tone, EUR could strengthen.
US Dollar (USD) Downbeat amid Wavering Market Mood
During Monday’s trade, the safe-haven US Dollar (USD) weakened or traded flatly against most major peers, potentially due to a lack of data.
However, these losses were tempered somewhat by a wavering market mood. Amid global growth fears and political instability in Russia, the market mood was modestly downbeat.
Later in today’s session, the ‘Greenback’ could struggle for support forecasts of a 1% decline in US durable goods orders holds true.
Canadian Dollar (CAD) Muted Ahead of CPI Data
The Canadian Dollar (CAD) saw relatively muted trade yesterday, with the focus shifting to the imminent consumer price index.
May’s inflation data is due to print tonight. Headline inflation is forecast to cool sharply to 3.4%, which could weigh on the ‘Loonie’ by denting Bank of Canada (BoC) rate rise bets.
Data Releases
Jun 27th 18:00 , EUR , ECB President Lagarde Speech ,
Jun 27th 22:00 , EUR , ECB Schnabel Speech ,
Jun 27th 22:30 , CAD , Inflation Rate (May) , 3.4%
Jun 27th 22:30 , USD , Durable Goods Orders (May) , -1%