Australian dollar (AUD) undermined by absence of data
Due to a lack of data and a cautious market mood, the Australian dollar (AUD) failed to find its footing during yesterday’s session.
With investors hesitant to place any significant bids, the ‘Aussie’ remained static. However, pared-back Reserve Bank of Australia (RBA) interest rate cut bets kept AUD afloat.
Today, the continued lack of Australian data releases could see AUD exchange rates stagnate.
New Zealand dollar (NZD) weakens amid risk-off mood
The New Zealand dollar (NZD) fell yesterday as a souring market mood dampened the risk-sensitive currency’s appeal.
However, NZD clawed back some losses in the evening, as sentiment improved slightly.
New Zealand data releases are in short supply today, which could prevent NZD from finding its footing.
Pound (GBP) listless amid light data calendar
The pound (GBP) continued to trade without a clear direction yesterday, as an ongoing lack of UK data subdued the currency.
In addition, Sterling’s appeal was capped by shifting levels of risk appetite. As an increasingly risk-sensitive currency, the pound wavered amid the mixed mood.
Today, another day of limited data may keep GBP exchange rates muted.
Euro (EUR) unmoved by record-low unemployment
Despite Eurozone unemployment falling to a record low of 6.4% in April, the euro (EUR) struggled to attract support during Thursday’s session.
A rise in Eurozone economic sentiment in May also failed to lift the common currency, with EUR trading without a clear trajectory.
This evening, the bloc’s consumer price index for May is due for publication. Could an expected rise in inflation boost the common currency?
US dollar (USD) pressured by slowing economic growth
Yesterday, a downward revision to US GDP data for the first quarter of 2024 prompted a selloff in the US dollar (USD).
Quarter-on-quarter growth was revised down from 1.6% to 1.3%, raising concerns about the US economy. Additionally, initial jobless claims crept higher, applying further pressure to USD.
Tonight, the ‘greenback’ could stage a recovery if the US core PCE price index – the Federal Reserve’s preferred measure of inflation – held at 2.8% in April as forecast.
Canadian dollar (CAD) rudderless amid falling oil prices
Yesterday, the crude-sensitive Canadian dollar (CAD) lacked direction as oil prices continued to weaken.
Today, the latest Canadian GDP data could strengthen CAD, if the economy expanded by 0.6% in the first quarter of 2024 as predicted.
Data releases
May 31st 14:00 EUR German Retail Sales (Apr) -0.1%
May 31st 19:00 EUR Inflation Rate (May) 2.5%
May 31st 22:30 CAD GDP Growth Rate (Q1) 0.6%
May 31st 22:30 USD Core PCE Price Index (Apr) 2.8%