Australian dollar (AUD) unable to capitalise on strong employment data
Downbeat trading conditions negated falling Australian unemployment yesterday, leaving the Australian dollar (AUD) listless.
Although unemployment fell to 4% in May, bearish trading conditions undermined the risk-sensitive ‘Aussie’.
This morning, AUD could come under pressure if the latest Westpac consumer confidence data shows a fall in household morale, as forecast.
New Zealand dollar (NZD) levels out amid sour trade
Yesterday, the risk-sensitive New Zealand dollar (NZD) initially weakened amid a downbeat market mood.
However, NZD’s losses were limited in scope and the ‘kiwi’ managed to regain some ground during the European trading hours.
New Zealand data releases are set to remain scarce today, which may see NZD continue to endure rangebound trade against its peers.
Pound (GBP) wavers amid dearth of data
Owing to an absence of impactful data, the pound (GBP) struggled to find a clear direction of trade yesterday.
This left the increasingly risk-sensitive Sterling exposed to a risk-averse market mood, which prevented it from gaining a foothold.
The pound may continue in this manner today, as the lull in UK data releases is set to continue.
Euro (EUR) shrugs off downbeat industrial data
Although the latest Eurozone industrial production data was underwhelming yesterday, the euro (EUR) remained afloat against its peers.
Production in the bloc decreased by 0.1%, below forecasts of a 0.2% increase. However, the common currency’s safer stature shielded it from significant losses.
This evening, European Central Bank (ECB) Vice-President Luis de Guindos is due to speak. If he remains coy about future interest rate cuts, EUR may gain ground.
US dollar (USD) capped by cooling producer prices
On Thursday, the safe-haven US dollar (USD) regained some of its post-inflation losses thanks to a hawkish tone from the Federal Reserve and a risk-off market mood.
However, a surprise decline in US producer price inflation capped USD’s upward trajectory.
This afternoon, the Michigan consumer sentiment index for June is due to show improving morale among American consumers. This could allow USD to gain ground.
Canadian dollar (CAD) stifled by dovish BoC remarks
Dovish commentary from Bank of Canada (BoC) Deputy Governor Sharon Kozicki undermined the Canadian dollar (CAD) yesterday.
Oil prices may be the primary driver of movement for the crude-linked ‘loonie’ today. If prices recover, CAD may strengthen.
Data releases
Jun 14th 11:30 AUD Westpac Consumer Confidence (Jun) 82
Jun 14th 19:00 EUR ECB Guindos Speech
Jun 15th 00:00 USD Michigan Consumer Sentiment (Jun) 72