Australian dollar (AUD) slides amid risk-averse trade
After an initial uptick on the back of strong Chinese exports data, the Australian dollar (AUD) sank during last Friday’s session.
The progressively downbeat market mood prompted the risk-sensitive ‘Aussie’ to relinquish its gains as investors flocked to safer currencies.
Today, markets are closed in observance of the King’s Birthday, which may limit AUD’s movement.
New Zealand dollar (NZD) slumps as market mood sours
A light data calendar left the risk-sensitive New Zealand dollar (NZD) vulnerable last Friday.
Amid speculation of fewer Federal Reserve interest rate cuts, the market mood deteriorated. This prompted the ‘kiwi’ to collapse against most major peers.
Domestic data remains largely absent today, which may leave NZD to consolidate its losses.
Pound (GBP) mixed amid continued absence of data
Last Friday saw the pound (GBP) end the week with another day of minimal data releases.
This prompted Sterling to lose out against stronger currencies, but GBP managed to gain ground against its weaker peers.
Today, data releases remain scarce. Because of this, Sterling may be unable to find a clear direction once again.
Euro (EUR) pressured by German industrial production weakness
The euro (EUR) ended last week on the defensive, following the release of disappointing German economic data.
Industrial production unexpectedly shrank by 0.1% in April, missing market expectations of a 0.3% rise. This furthered concerns that the Eurozone’s largest economy continues struggling to recover.
Turning to today, a light data calendar may leave the euro to trade in tandem with risk appetite. If trade is downbeat, the safer common currency could gain ground.
US dollar (USD) rallies as non-farm payrolls smash expectations
The end of last week saw the US dollar (USD) surge in the wake of a forecast-smashing non-farm payrolls report.
The US economy added 272,000 jobs in May, far more than the 185,000 markets expected, prompting speculation that the Federal Reserve could further delay any cuts to interest rates.
With US economic data in short supply today, risk appetite could drive the safe-haven US dollar’s movement.
Canadian dollar (CAD) shrugs off rising unemployment
Last Friday, the Canadian dollar (CAD) managed to remain afloat despite a rise in unemployment in May. This was due to CAD’s positive correlations with rising oil prices and a stronger US dollar.
The ‘loonie’ may trade in line with oil price fluctuations today. Rising prices could strengthen CAD exchange rates.