Australian dollar (AUD) dulled by disappointing PMIs
Underwhelming preliminary PMI surveys sapped sentiment towards the Australian dollar (AUD) last Friday, leaving it weakened.
The Australian manufacturing index contracted further in June, slipping down to 47.5. Similarly, the country’s service sector unexpectedly slowed, hampering the ‘Aussie’.
Turning to today, a lull in data releases could prevent AUD exchange rates from finding a clear trajectory.
New Zealand dollar (NZD) flat amid lack of data
Due to a light data calendar, last Friday saw the New Zealand dollar (NZD) trade in a listless manner.
This further left the acutely risk-sensitive ‘kiwi’ exposed to a sombre market mood, which likely limited its appeal.
NZD could trade in a wide range this morning, as investors analyse the latest New Zealand trade data.
Pound (GBP) volatile amid mixed data
The end of last week’s session saw the pound (GBP) fluctuate as new UK data painted a mixed picture of the British economy.
Domestic retail sales increased by an impressive 2.9% in May, a clear recovery from -1.8% in April. However, the UK’s latest PMIs undermined Sterling due to a dip in the services index, which fell to a seven-month low.
Today, the Confederation of British Industry (CBI) releases its industrial trends orders for June. A negative reading is expected, which may weigh on Sterling.
Euro (EUR) restricted by downbeat PMIs
The euro (EUR) endured muted trade at the end of last week, following a disappointing slate of preliminary PMIs.
Eurozone service sector activity unexpectedly slowed in June. Additionally, the bloc’s manufacturing index fell deeper into contraction territory. Overall, business activity slowed to a near standstill.
Later today, the euro could gain ground if Germany’s latest Ifo business climate reading for June improved as forecast.
US dollar (USD) rises as private sector indexes expand
At the end of last week, the US dollar (USD) gathered pace following the latest US PMI data.
The latest American preliminary PMIs showed that both the manufacturing and service sectors expanded further in June. Specifically, news that the US service sector grew to a 26-month high supported the ‘greenback’.
This evening, Federal Reserve official Christopher Waller is due to speak. If he strikes a hawkish tone, the ‘greenback’ could strengthen.
Canadian dollar (CAD) wavers amid variable data
Last Friday, the Canadian dollar (CAD) endured muted trade amid mixed data. While retail sales in April printed above expectations, a 0% PPI reading in May undermined any gains.
Looking at the session ahead, oil prices could be the primary catalyst of movement for the crude-sensitive ‘loonie’. If oil extends last week’s impressive gains, we could see CAD strengthen.
Data releases
Jun 24th 17:00 USD Fed Waller Speech
Jun 24th 18:00 EUR German Ifo Business Climate (Jun) 89.7
Jun 24th 20:00 GBP CBI Industrial Trends Orders (Jun) -21