Australian Dollar (AUD) Oscillates during Volatile Session
Last Friday, the Australian Dollar (AUD) endured choppy trade amid a volatile global market mood.
Locally, minimal data was present to give AUD meaningful support, leaving the risk-sensitive currency to fluctuate amid big swings in risk appetite.
Data releases appear thin on the ground again today, meaning the ‘Aussie’ may be unable to garner much support.
New Zealand Dollar (NZD) Listless amid RBNZ Pause Anticipation
Investors shifted focus to the Reserve Bank of New Zealand’s (RBNZ) monetary policy last Friday, dampening the New Zealand Dollar (NZD).
The RBNZ is expected to hold interest rates at the current level, following confirmation of a recession. As such, the ‘Kiwi’ was left trading listlessly against other currencies.
With no data scheduled today, the New Zealand Dollar will potentially be vulnerable to changes in risk appetite. Could bearish trade dent the ‘Kiwi’?
Pound (GBP) Supported by BoE Tightening Bets
The Pound (GBP) saw minimal trade last Friday, as the scarcity of UK macroeconomic data continued.
While bets on a 50bps hike from the Bank of England (BoE) underpinned Sterling, it remained a worrying prospect for the UK economy. Overtightening concerns remained in play, tempering any gains.
The Pound is opening this week with another day of minimal data. Persistent economic woes could take precedence, weighing on GBP.
Euro (EUR) Firms despite German Industry Slowdown
At the end of last week, the Euro (EUR) grinded higher, despite further slowdown in the German industrial sector.
Production in the Eurozone’s largest economy fell by 0.2% in May, lending further credence to concerns over Germany’s embattled industrial sector. Elsewhere, weakness in the US Dollar (USD) benefitted EUR, due to their negative correlation.
Due to a lack of data today, the Euro may be unable to gain significant ground against its peers.
US Dollar (USD) Crumples amid Muddled Labour Market Data
Volatility struck the US Dollar last Friday, as markets digested the latest set of labour market data.
Non-farm payrolls printed notably below forecasts for June, which initially dented the ‘Greenback’. However, a downtick in the unemployment rate cushioned these losses, but still left USD lowered against most peers.
Today, the safe-haven ‘Greenback’ will likely trade on risk appetite due to no economic data. Could a risk-off mood help USD strengthen?
Canadian Dollar (CAD) Rallies as Oil Prices Improve
The crude-linked Canadian Dollar (CAD) rallied last Friday, as downbeat employment data was trumped by rising oil prices.
Oil prices will likely be the main driver of movement for the ‘Loonie’ today, owing to a blank data slate. If oil extends its upside, CAD could climb.
Data Releases
No data scheduled.