Australian dollar (AUD) rangebound amid lack of data
Due to a light data calendar, the Australian dollar (RBA) traded within a narrow range against its peers yesterday.
Hawkish Reserve Bank of Australia (RBA) bets kept the ‘Aussie’ afloat, however, following the bank’s decision to keep the door open to future interest rate hikes earlier this week.
Later this morning, Australia’s latest preliminary PMIs for the service and manufacturing sectors are due. If the service sector expanded as forecast, AUD may rally.
New Zealand dollar (NZD) seesaws despite exiting recession
Despite stronger-than-expected GDP data for the first quarter of 2024, the New Zealand dollar (NZD) endured volatile trade yesterday.
The New Zealand economy expanded by 0.2% on a quarterly basis at the start of this year, above the expected print of 0%, marking the end of a recession. However, declining consumer sentiment undermined NZD’s gains.
The ‘kiwi’ may settle over the course of today’s trade, due to a lull in domestic data releases.
Pound (GBP) tumbles as BoE delivers dovish hold
On Thursday, the pound (GBP) slumped against its peers as the Bank of England (BoE) delivered its latest interest rate decision.
While the BoE kept rates unchanged, as expected, the accompanying meeting minutes revealed the decision was ‘finely balanced’. This caused investors to increase bets on a 25bps cut in August, thereby denting Sterling.
Today, the UK’s latest retail sales data and PMI reports are due. If sales improved by 1.5% in May and June’s PMI results are positive, the pound may strengthen.
Euro (EUR) wobbles amid cooling German PPI
Cooling German producer price inflation kept the euro (EUR) on the back foot during yesterday’s session.
PPI fell for an 11th consecutive month in the Eurozone’s largest economy, contracting by 2.2% in May. This was more than an expected 2% deceleration, and sparked bets that inflation may continue to decrease across the bloc.
Turning to tonight, a slight improvement in the Eurozone’s preliminary services PMI could support the common currency.
US dollar (USD) strengthens despite signs of softening labour market
On Thursday, the US dollar (USD) rose against its rivals, despite data showing that new unemployment benefit claims remained high in the US last week.
The American currency’s upside came amid a rise in US Treasury yields, which lifted USD.
Tonight, signs of softening activity in the US services sector could cause the ‘greenback’ to trim its gains.
Canadian dollar (CAD) supported by improving oil prices
Yesterday, the crude-sensitive Canadian dollar (CAD) strengthened against most major peers as oil prices continued to improve.
Looking at the session ahead, if Canadian retail sales improved in April by 0.7% as forecast, the ‘loonie’ may gain further ground.
Data releases
Jun 21st 09:00 AUD Services PMI (Jun) 53
Jun 21st 16:00 GBP Retail Sales (May) 1.5%
Jun 21st 18:00 EUR Services PMI (Jun) 53.5
Jun 21st 18:30 GBP Services PMI (Jun) 53
Jun 21st 22:30 CAD Retail Sales (Apr) 0.7%
Jun 21st 23:45 USD Services PMI (Jun) 53.7