Australian dollar (AUD) reverses course amid falling export prices
Yesterday, the Australian dollar (AUD) initially strengthened amid an increase in Australia’s trade surplus in April.
However, AUD relinquished its gains later in the session as analysis showed a sharp fall in export prices in the same month.
Later this morning, the ‘Aussie’ could regain ground if Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser strikes a hawkish tone in his speech.
New Zealand dollar (NZD) wavers amid lack of data
Due to a short supply of macroeconomic data, the New Zealand dollar (NZD) traded without a clear direction on Thursday.
A mixed market mood limited the risk-sensitive currency’s appeal, while NZD’s positive correlation with AUD also contributed to the uncertain movement.
New Zealand data remains hard to come by today, which means NZD may endure more of the same mixed trade today.
Pound (GBP) rudderless as data lull continues
The pound (GBP) continued its streak of static trade in lieu of any impactful domestic data during Thursday’s session.
While market-moving data releases were thin on the ground, an upgraded UK growth forecast from the British Chambers of Commerce (BCC) may have had some effect on GBP, perhaps cushioning it from losses.
The week is set to end with another day of minimal data for the pound, which may in turn lead to directionless trade.
Euro (EUR) firms amid hawkish ECB rate cut
Yesterday, the euro (EUR) firmed against its rivals as the European Central Bank (ECB) enacted a ‘hawkish’ interest rate cut.
While the central bank cut rates by 25bps, as expected, it reiterated a data-driven approach and refused to commit to a set trajectory of policy loosening. With the timing of the next cut up in the air, EUR enjoyed support.
Turning to today, the euro may see volatility as markets continue to digest the ECB’s decision. However, robust German trade and industrial data could underpin the common currency.
US dollar (USD) undermined by rising jobless claims
On Thursday, the US dollar (USD) initially rose thanks to an uptick in US Treasury yields.
However, later data showed an increase in initial jobless claims, suggesting growing slack in the US labour market. This saw USD’s appeal wane.
Tonight, the ‘greenback’ may strengthen if the non-farm payrolls report showed that job creation increased to 185,000 in May. However, a weaker-than-expected reading could see USD slump.
Canadian dollar (CAD) licks wounds post BoC rate cut
Yesterday, the Canadian dollar (CAD) consolidated its losses as markets digested Wednesday’s interest rate cut from the Bank of Canada (BoC). A surprisingly weak Ivey PMI also pressured CAD.
The ‘loonie’ may weaken this evening, if Canada’s unemployment rate rose to a 28-month high of 6.2% in May as economists have forecast.
Data releases
Jun 7th 13:00 AUD RBA Hauser Speech
Jun 7th 16:00 EUR German Balance of Trade (Apr) €22.6bn
Jun 7th 16:00 EUR German Industrial Production (Apr) 0.3%
Jun 7th 22:30 CAD Unemployment Rate (May) 6.2%
Jun 7th 22:30 USD Non Farm Payrolls (May) 185,000
Jun 8th 00:15 EUR ECB President Christine Lagarde Speech