Australian dollar (AUD) stumbles following downbeat Chinese data
The Australian dollar (AUD) came under pressure yesterday following weak data from China, due to AUD’s status as a proxy currency for the Chinese economy.
Chinese GDP and retail sales both came in worse than expected, denting the ‘Aussie’. However, hopes that Beijing would implement fresh stimulus measures cushioned the Australian dollar’s downside.
Today, a lack of economic data could leave AUD exchange rates to trade on risk appetite.
New Zealand dollar (NZD) falls following service sector contraction
The New Zealand dollar (NZD) fell yesterday after new data showed a steeper-than-forecast contraction in New Zealand service sector activity last month.
Activity deteriorated to its worst level on record outside of a Covid lockdown. This sign of economic stress also fuelled bets on a more dovish approach from the Reserve Bank of New Zealand (RBNZ).
New Zealand data thins out today. As a result, market risk dynamics could drive the risk-sensitive ‘kiwi’.
Pound (GBP) rangebound amid lack of data
The pound (GBP) was muted yesterday as a lack of UK economic data kept the currency confined to a narrow range.
Meanwhile, Sterling was unable to extend its recent impressive rally after Bank of England (BoE) policymaker Swati Dhingra said that ‘now is the time’ to start cutting interest rates.
Looking ahead, British data releases are once again absent from the calendar today. Therefore, the pound may remain muted.
Euro (EUR) subdued amid mixed production data
The euro (EUR) was subdued on Monday as some lacklustre Eurozone data left the currency struggling to attract support.
Industrial production in the bloc shrank 0.6% in May. However, this was better than the expected contraction of 1% and the data showed growth in the production of energy and non-durable consumer goods, which prevented steep losses.
This evening, Germany’s latest ZEW economic sentiment index is in focus for EUR investors. Could a deterioration dent the single currency?
US dollar (USD) pressured by Fed rate cut bets
The US dollar (USD) was choppy at the start of this week’s session as the attempted assassination of US Presidential hopeful Donald Trump infused the ‘greenback’ with volatility.
However, USD was ultimately subdued as markets continued to price in an interest rate cut from the Federal Reserve in September.
Tonight, US retail sales could drive USD movement. Could stalling American sales growth see the ‘greenback’ stumble?
Canadian dollar (CAD) dented by weak economic outlook
The Canadian dollar (CAD) fell yesterday as the Bank of Canada’s (BoC) latest Business Outlook Survey pointed to weak demand and fading wage and inflation expectations.
The ‘loonie’ could face further losses tonight, if Canada’s latest consumer price index reveals cooling inflationary pressures.
Data Releases
16th Jul 19:00 EUR German ZEW Economic Sentiment Index (Jul) 42.5
16th Jul 22:30 CAD Inflation Rate (Jun) 2.9%
16th Jul 22:30 USD Retail Sales (Jun) 0%