Australian dollar (AUD) carries forward hawkish RBA momentum
During yesterday’s session, the Australian dollar (AUD) continued to firm as the Reserve Bank of Australia’s (RBA) hawkish rhetoric continued to inspire investors.
By keeping the door open to interest rate hikes at its latest decision, the RBA prompted ongoing support for AUD despite a tepid market mood.
Australian data releases are few and far between today, which could see the ‘Aussie’ struggle to find a clear direction.
New Zealand dollar (NZD) undermined by minimal releases
Wednesday saw the New Zealand dollar (NZD) edge lower against its peers, as a lull in data left it vulnerable to a muted market mood.
Furthermore, anticipation began to build ahead of this morning’s GDP report, with NZD suffering as investors expected a downbeat reading.
The ‘kiwi’ is likely to see volatile trade today, as investors continue to digest New Zealand’s GDP data for the second quarter of this year.
Pound (GBP) rocky amid cooling inflation
Yesterday, the pound (GBP) initially firmed against its peers in the wake of the latest UK inflation data.
Services inflation printed above forecasts, prompting investors to adjust their expectations for future Bank of England (BoE) interest rate cuts. However, GBP couldn’t hold on to its gains as headline inflation fell to the BoE’s target of 2%.
Today, the BoE’s voting split and meeting minutes are likely to take precedence over the actual decision. Any dovish suggestions could weigh heavily on the pound.
Euro (EUR) tepid amid lack of data
Eurozone data releases were thin on the ground yesterday, which saw the euro (EUR) endure muted trade for the session.
Additionally, a mixed market mood further limited the safer common currency’s movements.
Tonight, the euro could see modest support if the Eurozone’s consumer confidence index was found to have increased slightly in June.
US dollar (USD) stagnant amid light data calendar
The US dollar (USD) continued to trade within a narrow range yesterday, due to a lull in macroeconomic data.
This left USD exposed to a mixed market mood. As a safe-haven currency, the ‘greenback’ was unable to attract support.
Tonight, a fall in the number of new US jobless claims last week could support the US dollar, as it may signal a healthy labour market.
Canadian dollar (CAD) wobbles amid wavering oil prices
Yesterday, the crude-sensitive Canadian dollar (CAD) wavered against its peers amid fluctuating oil prices.
The ‘loonie’ may see volatile trade today, as markets analyse the latest meeting minutes from the Bank of Canada (BoC), which were released overnight.
Data releases
Jun 20th 16:00 EUR German PPI (May) -2%
Jun 20th 21:00 GBP BoE Interest Rate Decision 5.25%
Jun 20th 22:30 USD Initial Jobless Claims (15/Jun) 235,000
Jun 21st 00:00 EUR Consumer Confidence (Jun) -13.6