Australian dollar (AUD) uncertain as trading conditions shift
The Australian dollar (AUD) was mixed yesterday as a shifting market mood saw the risk-sensitive currency waver.
A lack of Australian economic data added to AUD’s muted movement, although the ‘Aussie’ was able to post gains against its weakest peers as risk sentiment improved in the evening.
Australia’s latest consumer confidence index, which has been delayed multiple times, is due to print today. If sentiment decreased this month as expected, AUD may weaken.
New Zealand dollar (NZD) muted despite robust trade data
The New Zealand dollar (NZD) struggled to attract support yesterday, despite stronger-than-expected New Zealand trade data.
Meanwhile, the shifting market mood put some pressure on the risk-sensitive ‘kiwi’, keeping the currency subdued.
New Zealand data releases are set to thin out today, which could leave NZD vulnerable to further changes in the market mood.
Pound (GBP) rises despite underwhelming manufacturing data
Despite lacklustre manufacturing data from the Confederation of British Industry (CBI), the pound (GBP) firmed against some of its rivals yesterday.
Although industrial trends improved more than expected in June, the score still remained negative at -18. However, the increasingly risk-sensitive pound enjoyed an improving market mood in the latter part of the European session.
Due to a lull in UK macroeconomic releases, GBP could struggle to find its footing today.
Euro (EUR) mixed amid growing German pessimism
The euro (EUR) was volatile yesterday as downbeat German data and EUR’s negative correlation with the US dollar (USD) both impacted the single currency.
Germany’s latest Ifo business climate indicator showed an unexpected decline in sentiment among German firms this month. However, ongoing weakness in USD lent EUR some support.
Turning to today, an absence of domestic data could prompt the common currency to trade without a clear direction.
US dollar (USD) wanes as investors cash in
Profit-taking undermined the US dollar on Monday, following last week’s extensive gains for the ‘greenback’.
In addition, a positive shift in risk appetite later in the session further undermined the safe-haven US dollar.
This evening, Federal Reserve official Michelle Bowman is due to speak. As one of the more hawkish members of the Fed, any remarks relating to tighter policy could lift USD.
Canadian dollar (CAD) mixed amid lack of data
Yesterday, the Canadian dollar (CAD) traded in a mixed capacity due to a light data calendar. However, rising oil prices may have kept CAD afloat.
Tonight, the latest Canadian inflation data is expected to a show a softening to 2.6% in May. If inflation has continued to cool, the ‘loonie’ may weaken.
Data releases
Jun 25th 10:30 AUD Westpac Consumer Confidence Index (Jun)
Jun 25th 21:00 USD Fed Bowman Speech
Jun 25th 22:30 CAD Inflation Rate (May) 2.6%
Jun 26th 00:00 USD CB Consumer Confidence (Jun) 100