Australian dollar (AUD) stumbles on tepid RBA comments
The Australian dollar (AUD) faltered yesterday morning following the publication of the Reserve Bank of Australia’s (RBA) latest meeting minutes.
The minutes highlighted the central bank’s concerns about Australia’s economy, with policymakers judging that the case for further interest rate holds remains strong. This dampened hopes of an imminent rate hike and saw AUD edge lower.
Looking ahead, China’s latest Caixin services PMI is due for release this morning. A forecast softening in services activity may hamper AUD, due to its status as a proxy currency for the Chinese economy.
New Zealand dollar (NZD) falters amid risk-averse mood
The risk-sensitive New Zealand dollar (NZD) faced headwinds yesterday as a gloomy market sentiment dampened the currency’s appeal.
Turning to today, market risk dynamics could once again drive NZD movement amid an ongoing lack of New Zealand economic data.
Pound (GBP) fluctuates amid data lull
The pound (GBP) traded without a clear direction on Tuesday amid a lack of macroeconomic releases in the UK.
Improved growth projections from auditing giant KPMG may have kept Sterling afloat, amid forecasts that easing UK inflation and tailwinds to consumption could boost UK growth this year.
Turning to today, the UK’s finalised services PMI will likely be the focus for GBP investors. Confirmation of further softening in the British services sector could deter investor support for the pound.
Euro (EUR) stumbles amid cooling CPI
The euro (EUR) fell against its major rivals yesterday evening following the Eurozone’s latest inflation data.
Headline inflation eased as forecast to 2.5% in June, prompting speculation that the European Central Bank (ECB) may continue to lower interest rates in September. However, sticky services inflation cushioned EUR’s downside.
The focus for EUR investors in today’s session will likely be the Eurozone’s finalised services PMI, amid a lack of high-impact data.
US dollar (USD) tempered by lukewarm Fed remarks
The US dollar (USD) initially extended its gains on Tuesday morning amid a souring market mood.
Higher-than-forecast US job openings then lent the ‘greenback’ some additional support overnight. However, commentary from Federal Reserve Chair Jerome Powell offset USD’s gains, as he stated that recent US inflation data was indicative of a ‘disinflationary path’.
Tonight, both the ADP employment change and initial jobless claims releases are due out. Could signs of a robust US labour market see the US dollar strengthen?
Canadian dollar (CAD) slips amid manufacturing slowdown
The Canadian dollar (CAD) fell yesterday following a worse-than-forecast domestic manufacturing PMI in June.
Looking forward, Canada’s latest trade data is due for release. A widening Canadian trade deficit may leave the ‘loonie’ on the back foot.
Data Releases
18:00 EUR Services PMI (Jun) 52.6
18:30 GBP Services PMI (Jun) 51.2
20:30 CAD Balance of Trade (May) CA$-1.2bn
22:15 USD ADP Employment Change (Jun) 160,000
22:30 USD Initial Jobless Claims (29/Jun) 235,000