Australian dollar (AUD) firms without clear catalyst
Despite market closures in observance of the King’s Birthday, the Australian dollar (AUD) climbed against its peers on Monday.
While thin liquidity may have placed a ceiling on AUD’s gains, the normally risk-sensitive ‘Aussie’ seemed unbothered by a downbeat market mood.
This morning, the latest NAB business confidence index is due. In May, sentiment is forecast to have ticked lower to a stall, which may dent AUD.
New Zealand dollar (NZD) lifted by hawkish RBNZ bets
Yesterday, bets that the Reserve Bank of New Zealand (RBNZ) will leave interest rates unchanged for 2024 lifted the New Zealand dollar (NZD).
Due to persistent inflationary pressures, the RBNZ is no longer expected to cut rates this year. However, the ‘kiwi’ may have seen its gains limited by an absence of domestic data.
Releases remain light on the ground today, which could prompt NZD to trade in a narrow range.
Pound (GBP) mixed amid continued absence of data
The continued lack of domestic data limited the pound (GBP) on Monday.
While GBP was able to gain ground against its weaker peers, Sterling traded flatly against most other currencies.
UK data is finally making a return to calendars today, with the UK’s latest labour market report. Could a hold in unemployment and average earnings lift Sterling?
Euro (EUR) sinks amid growing political uncertainty
Political turbulence dented the euro (EUR) on Monday, as markets reacted to the weekend’s election results.
Following gains amongst far-right political parties in the European Union, French President Emannuel Macron announced a snap election. Owing to fears of fresh political upheaval, the euro plummeted during the session.
Turning to today, European Central Bank (ECB) Chief Economist Philip Lane is due to speak. If he strikes a hawkish tone, EUR may strengthen.
US dollar (USD) consolidates post-payrolls gains
The start of this week saw the US dollar (USD) consolidate its recent gains, although a light data calendar capped any further significant upside.
Owing to a downbeat market mood, the safe-haven ‘greenback’ remained afloat against most major peers. However, it seemed unable to fully press its advantage.
US economic data is thin on the ground today, potentially leaving USD muted ahead of tomorrow’s inflation data and the following Federal Reserve decision.
Canadian dollar (CAD) wavers amid lull in data
On Monday, the Canadian dollar (CAD) traded without a clear direction, due to an absence of domestic data releases.
The ‘loonie’ may trade in tandem with oil prices today. If they continue to increase, CAD may find a foothold against its peers.
Data releases
Jun 11th 11:30 AUD NAB Business Confidence (Apr) 0
Jun 11th 16:00 GBP Unemployment Rate (Apr) 4.3%
Jun 11th 16:00 GBP Average Earnings excl Bonuses (Apr) 6%
Jun 11th 21:00 EUR ECB Lane Speech