Australian Dollar (AUD) Edges Lower as Risk Appetite Wanes
At the end of the week, the Australian Dollar (AUD) slowed its momentum, due to a lack of additional data drivers.
The strong risk-on rally that propelled AUD to multi-week highs came to an end, causing the ‘Aussie’ Dollar to trim its gains.
Through today’s session, a slight data calendar could see the ‘Aussie’ continue to trade on market risk appetite. Could a slowdown in Chinese GDP see the market mood sour, driving AUD lower?
New Zealand Dollar (NZD) Retreats as Market Mood Softens
Muted trade clouded the New Zealand Dollar (NZD) on Friday, due to a wavering market mood limiting risk appetite. Like AUD, NZD relinquished some of the week’s gains.
Over today’s session, the ‘Kiwi’ could see erratic trade as investors digest this morning’s service sector PMI.
Pound (GBP) Ends the Week Mixed
Last Friday, the Pound (GBP) spent the session moving in a mixed range, although it managed to hold near recent highs.
Persistent bets on further tightening from the Bank of England (BoE) underpinned the currency, but a lack of data catalysts saw it slip against stronger peers.
Risk appetite is likely to drive GBP rates today. Could a gloomy market mood dent GBP against its safer peers?
Euro (EUR) Holds Strong in End-of-Session Trade
The Euro (EUR) held firm at the end of last week’s trade, as a more cautious market mood buoyed the safer single currency.
News that the Eurozone trade deficit narrowed more than forecast also served to underpin EUR exchange rates.
Due to a light data calendar, the common currency may struggle to find clear support during today’s session.
US Dollar (USD) Recovers amid Wavering Risk Appetite
The US Dollar (USD) was left licking its wounds last Friday, recouping modest losses as a tepid market mood brought some safe-haven flows. USD had suffered a sharp selloff earlier in the week as markets repriced their expectations for more Federal Reserve rate hikes.
The University of Michigan’s consumer sentiment index then compounded this recovery, after printing significantly above forecasts for July.
Pared back Fed rate hike bets could continue to restrain the ‘Greenback’ today, amid a lack of data catalysts.
Canadian Dollar (CAD) Plunges Alongside Oil
The crude-linked Canadian Dollar (CAD) slumped on Friday as a sharp drop in oil prices dragged the currency lower.
The ‘Loonie’ is likely to trade on oil price fluctuations today. If prices continue to slide, CAD could face headwinds.
Data Releases
17th Jul 08:30 NZD Services NZ PSI (Jun) 52.5