Australian dollar (AUD) unclear amid mixed market mood
The risk-sensitive Australian dollar (AUD) wavered without a clear direction yesterday as a mixed market mood prevailed.
In addition, some unclear trade in the commodity market added to AUD’s uncertain movement.
Market-moving Australian data is in short supply today. This could leave the ‘Aussie’ muted, particularly as investors brace for tomorrow’s inflation data.
New Zealand dollar (NZD) fluctuates lower in absence of data
The New Zealand dollar (NZD) also fluctuated yesterday, although the ‘kiwi’ fared worse than the ‘Aussie’, with NZD falling against most peers.
New Zealand data is thin on the ground again today. Therefore, market risk dynamics could drive the risk-sensitive ‘kiwi’.
Pound (GBP) wobbles amid UK tax hike fears
The pound (GBP) stumbled out of the gate this week amid fears that UK Chancellor Rachel Reeves would raise taxes and cut spending to plug a £20bn gap in the public finances inherited from the previous government.
However, some government officials denied that the Chancellor would announce any new tax plans ahead of the autumn budget, allowing GBP to recoup some of its losses.
British economic data is absent from today’s calendar, potentially leaving the pound to trade without a clear trajectory.
Euro (EUR) weakens ahead of high-impact data
The euro (EUR) came under pressure yesterday due to its strong negative correlation with a rising US dollar (USD).
EUR investors also seemed reluctant to support the currency ahead of some key Eurozone data due out later in the week, including this evening’s GDP figures and Wednesday’s consumer price index.
The Eurozone GDP growth rate for the second quarter of 2024 is expected to show a slowdown in economic growth. Could this weigh on the single currency?
US dollar (USD) firms amid lingering tailwinds
The US dollar rose yesterday, with the ‘greenback’ enjoying the afterglow of last week’s stronger-than-forecast GDP and inflation data.
However, the data didn’t dispel expectations that the Federal Reserve will still cut interest rates in September. This limited USD’s gains.
Overnight, the latest US job openings figure and consumer confidence index are both due to decline. If they print as expected, USD exchange rates could struggle.
Canadian dollar (CAD) buoyed by USD strength
The Canadian dollar (CAD) rose during yesterday’s session, with the ‘loonie’ enjoying its positive trading relationship with the US dollar.
With no Canadian data due out today, oil price movements could drive the commodity-linked ‘loonie’.
Data Releases
30th Jul 19:00 EUR GDP Growth Rate (Q2)
30th Jul 19:00 EUR Economic Sentiment (Jul)
30th Jul 22:00 EUR German Inflation Rate (Jul)
31st Jul 00:00 USD JOLTs Job Openings (Jun)
31st Jul 00:00 USD CB Consumer Confidence (Jul)