Australian dollar (AUD) rocked by market volatility
The Australian dollar (AUD) initially strengthened yesterday morning, following some dovish signals by the Federal Reserve at its latest monetary policy meeting.
A downbeat batch of Australian trade data later pressured AUD exchange rates, before a shifting market mood rocked the risk-sensitive ‘Aussie’ and led to mixed trade.
Coming up, Australia’s latest TD-MI inflation gauge is due for release. Could signs of stubborn domestic inflation last month lift AUD?
New Zealand dollar (NZD) recovers from oversold conditions
The New Zealand dollar (NZD) continued to extend its recent recovery from oversold conditions yesterday, after hitting multi-month lows earlier in the week.
An ongoing absence of fresh New Zealand data today could see the acutely risk-sensitive ‘kiwi’ driven by global risk dynamics. Could cheery trade see NZD climb higher?
Pound (GBP) tumbles amid BoE rate cut
The Bank of England (BoE) delivered an interest rate cut last night, with five of the nine BoE policymakers voting to reduce the central bank’s base rate.
The pound (GBP) plummeted against its rivals in anticipation of a rate cut. However, some of the bank’s rate-setters warned of persistent inflationary pressures in the UK, which seemed to stem the sell-off.
This evening, BoE Chief Economist Huw Pill is due to speak. As Pill is one of the bank’s dissenting voices, any convincingly hawkish rhetoric could lift Sterling from its recent lows.
Euro (EUR) retreats as Eurozone unemployment rises
The euro (EUR) stumbled on Thursday evening following a surprise uptick in the Eurozone’s unemployment rate.
After striking an all-time low for two successive months, unemployment across the bloc unexpectedly inched higher to 6.5%, deterring investor interest in the common currency.
Coming up, a lack of fresh Eurozone releases could see EUR trade without a clear direction as the week draws to a close.
US dollar (USD) recovers following Fed decision
After weakening in the wake of the Federal Reserve’s dovish interest rate hold, the US dollar (USD) managed to recover as yesterday’s session progressed.
An eventual shift to risk-off trade buoyed the safe-haven currency, with USD even managing to shrug off a surprisingly weak ISM manufacturing PMI.
This evening, the latest US non-farm payrolls report is due for release. Economists expect to see a notable decline in the number of jobs added by the US economy in July, which could see the ‘greenback’ tumble against its rivals.
Canadian dollar (CAD) stymied by manufacturing slowdown
The Canadian dollar (CAD) struggled to attract investor support on Thursday following a larger-than-forecast contraction in Canada’s manufacturing sector.
In the absence of any notable domestic data today, fluctuating oil prices could drive movement in the crude-linked ‘loonie’.
Data Releases
2nd Aug 11:00 AUD TD-MI Inflation Gauge (Jul) 0.3%
2nd Aug 11:30 AUD PPI (Q2) 1%
2nd Aug 21:15 GBP BoE Pill Speech
2nd Aug 22:30 USD Non Farm Payrolls (Jul) 175,000
2nd Aug 22:30 USD Unemployment Rate 4.1%