Australian Dollar (AUD) Wavers following PMI Reports
Disappointing PMI surveys put some pressure on the Australian Dollar (AUD) yesterday, after they revealed that private sector activity shrank more than forecast this month.
However, messaging from China’s politburo lent the ‘Aussie’ some support, as political leaders vowed more support for the Chinese economy. This supported the China-proxy Australian Dollar.
Today, the ‘Aussie’ could trade in narrow boundaries as investors hold back more aggressive bets ahead of the inflation data midweek.
New Zealand Dollar (NZD) Rallies on Better-than-Forecast Trade Data
New Zealand’s balance of trade shrank less than expected on Monday, boosting the New Zealand Dollar (NZD) against its peers.
Furthermore, news of further economic stimulus in China likely provided tailwinds due to the countries’ close trading links.
Over today’s session, the risk-sensitive ‘Kiwi’ may trade in tandem with the market mood due to a light data calendar.
Pound (GBP) Undermined by Private Sector Slowdown
With both the services and manufacturing indexes missing forecasts for July, the Pound (GBP) struggled for support on Monday.
The surveys outlined how high interest rates and the cost-of-living crisis are weighing on the UK economy. With this in mind, bets on additional tightening from the Bank of England (BoE) remained depressed.
Today, new data from the Confederation of British Industry (CBI) could impact GBP. Will more disappointing data dent the Pound?
Euro (EUR) Slides amid Private Sector Contraction
Dire PMIs also weighed heavily on the Euro (EUR) throughout yesterday’s session.
Much like the Pound, deteriorating activity in both the services and manufacturing sectors darkened the Eurozone’s economic outlook.
This evening, Germany’s Ifo business climate index could dent the Euro, if it ticks downward as is currently forecast.
US Dollar (USD) Choppy amid Mixed PMI Releases
Wavering trade clouded the US Dollar (USD) during Monday’s session, owing to a mixed set of PMI surveys.
While the services score fell more than forecast to 52.4, the US manufacturing sector printed far above expectations at 49. These mixed results saw the ‘Greenback’ trade in a wide range.
Overnight, the US Dollar could strengthen if American consumer confidence increased over July as forecast.
Canadian Dollar (CAD) Rises as Oil Prices Strengthen
Owing to a surge in oil prices, the crude-linked Canadian Dollar (CAD) managed to strengthen against its peers on Monday.
The ‘Loonie’ may continue to gain traction today, should oil prices keep climbing higher.
Data Releases
Jul 25th 18:00 EUR DE Ifo Business Climate (Jul) 88
Jul 25th 20:00 GBP CBI Industrial Trends Orders (Jul) -12
Jul 25th 20:00 GBP CBI Business Optimism Index (Q3) 5
Jul 26th 00:00 USD CB Consumer Confidence (Jul) 111.5