Australian dollar (AUD) stifled by short supply of data
With Australian data in short supply on Friday, the Australian dollar (AUD) ended last week’s session on a muted note.
Although elevated risk appetite allowed the ‘Aussie’ to gain ground against some safer rivals, a lack of domestic data capped its gains.
Today, data releases are set to remain hard to come by, which could restrict AUD exchange rates.
New Zealand dollar (NZD) wavers despite rising consumer confidence
At the end of last week’s session, the New Zealand dollar (NZD) struggled to find support, despite an improvement in consumer sentiment.
New Zealand’s consumer confidence index printed at 84.9 in May, an increase from April’s reading of 82.1. While this lent some initial strength to the ‘kiwi’, the currency was unable to cement its gains against most peers.
NZD exchanges rates are likely to remain flat today, as the lull in data releases continues.
Pound (GBP) wavers as retail sales plunge
The pound (GBP) closed last week in a mixed capacity, amid a larger-than-expected drop in UK retail sales.
In April, sales tumbled by 2.3% on a monthly basis, as poor weather and the cost-of-living crisis squeezed consumer spending. However, due to an improving market mood, the increasingly risk-sensitive Sterling managed to remain afloat.
Turning to today, GBP is likely to remain muted due to a bank holiday market closure in the UK.
Euro (EUR) supported by fading USD
On Friday, the euro (EUR) began the session on a static note, due to an absence of domestic data releases.
However, a progressively weakening US dollar (USD) allowed the common currency to gain some support due to their negative correlation.
This evening, the euro could extend its gains if Germany’s business climate reading for May improves as forecast.
US dollar (USD) slips amid upbeat trade
Despite better-than-expected durable goods orders in April, the US dollar weakened on Friday against most peers due to risk-on trade.
The safe-haven currency was unable to take advantage of the surprise 0.7% increase in orders, as investors opted for riskier assets. However, bets on a delay to Federal Reserve interest rate cuts may have kept USD cushioned.
Today, the ‘greenback’ may trade within a narrow range as a light data calendar leaves it exposed to market dynamics.
Canadian dollar (CAD) wobbles amid falling retail sales
Last Friday, an unexpected drop in retail sales weighed on the Canadian dollar (CAD), causing it to waver against its peers. However, a rise in oil prices then lifted the crude-linked currency in the evening.
Turning to today, the ‘loonie’ may endure listless trade amid a sparseness of data.
Data releases
May 27th 18:00 EUR German Ifo Business Climate (May) 90.3