Australian dollar (AUD) stumbles amid data lull
A cautious market sentiment and a lack of fresh data saw the risk-sensitive Australian dollar (AUD) edge lower on Friday morning.
Wavering commodity prices and a fluctuating market sentiment later exposed the ‘Aussie’ to further losses against some of its rivals.
Turning to today, domestic releases are in short supply. Therefore, risk appetite could continue to influence AUD movement.
New Zealand dollar (NZD) sinks amid rising RBNZ rate cut expectations
A recent rise in Reserve Bank of New Zealand (RBNZ) interest rate cut bets saw the New Zealand dollar (NZD) extending its recent losses throughout Friday’s session, as the ‘kiwi’ fell to multi-month lows against some of its peers.
Today, a lack of New Zealand data could see the highly risk-sensitive currency left vulnerable to global risk dynamics.
Pound (GBP) edges lower following downbeat retail data
The pound (GBP) struggled to attract investor interest on Friday evening following a larger-than-forecast decline in UK retail activity last month.
British retail sales fell by 1.2% in June, following a 2.9% rebound in May. Analysts largely attributed the sharp decline to pre-election uncertainty and poor weather, which seemed to cushion GBP’s downside.
Turning to today, market-moving UK data is absent from the calendar. GBP may therefore trade without a clear direction.
Euro (EUR) wavers amid data lull
The euro (EUR) fluctuated on Friday with notable data from the Eurozone in short supply.
The European Central Bank’s (ECB) decision to keep interest rates unchanged on Thursday night weighed on the common currency amid a lack of fresh releases, as markets continued to digest ECB President Christine Lagarde’s lukewarm commentary.
Looking ahead, an ongoing data lull in the Eurozone this evening may see EUR struggling to attract support.
US dollar (USD) extends recovery on hawkish Fed comments
The US dollar (USD) rose on Friday morning following some hawkish remarks from Federal Reserve policymaker Mary Daly, as she stated that it would be a ‘risk’ to lower interest rates ‘too soon’.
Daly’s cautious stance coupled with a souring market sentiment helped extend the US dollar’s recovery from recent lows, while rising US Treasury bond yields lent the ‘greenback’ further support overnight.
A data-light start to the week could see USD once again driven by risk appetite and Fed policy expectations.
Canadian dollar (CAD) faces selling pressure amid retail slump
The Canadian dollar (CAD) stumbled on Friday evening following some weaker-than-forecast domestic retail data. Falling oil prices applied further pressure to the crude-linked ‘loonie’ overnight.
Today, a lack of Canadian data could see oil prices fluctuations drive CAD movement.