Australian dollar (AUD) weakens amid risk-averse market impulse
Gloomy trading conditions saw the acutely risk-sensitive Australian dollar (AUD) struggle through last Friday’s session.
Furthermore, an absence of domestic data releases applied additional pressure to the ‘Aussie’.
This morning, AUD could climb if consumer inflation expectations ticked higher in June, as expected.
New Zealand dollar (NZD) crumbles amid signs of economic recession
On Friday, the New Zealand dollar (NZD) slumped against most peers, as the latest New Zealand PMI missed forecasts.
May marked the 14th consecutive month of contraction for the country’s manufacturing sector, with orders continuing to decline. Recessionary conditions were highlighted as a key cause, prompting a selloff in NZD.
The ‘kiwi’ may face volatility today as markets analyse May’s service sector index.
Pound (GBP) slumps amid downbeat market mood
Dismal trading conditions and a continued absence of UK data prompted the pound (GBP) to slump last Friday.
With no data catalysts to keep Sterling afloat, GBP fell by the wayside as investors sought out safer assets.
The pound may continue to struggle today, as UK data remains thin on the ground.
Euro (EUR) slides amid growing political fears
Worries about the upcoming French elections weighed on the euro (EUR) on Friday, following a tumultuous week in EU politics.
Investors were concerned that a victory for the far-right National Rally party or a new left-wing alliance could lead to fiscally irresponsible policies, potentially triggering market panic in the Eurozone’s second-largest economy.
These jitters could continue to weigh on the common currency during today’s session, amid a lack of other data releases.
US dollar (USD) soars amid risk-averse trade
The end of last week saw the US dollar (USD) rally against its peers amid a souring market mood.
While the latest US consumer sentiment index printed below forecasts and showed weakening household morale, bearish trade supported the safe-haven ‘greenback’.
Turning to today, a light data calendar is likely to see USD once again trade on market risk appetite. Could an ongoing downbeat mood see the currency push higher?
Canadian dollar (CAD) supported by recovering oil prices
Last Friday, the crude-sensitive Canadian dollar (CAD) climbed against its peers as oil prices began to mount a recovery.
Oil trade is likely to remain the predominant driver of movement for the ‘loonie’ today. If prices keep increasing, CAD may strengthen further.
Data releases
Jun 17th 11:30 AUD Consumer Inflation Expectations (Jun)