Australian Dollar (AUD) climbs on sustained risk appetite
The Australian dollar (AUD) extended its gains at the start of this week, buoyed by continued risk-on sentiment in global markets.
With a lack of domestic data releases, the ‘Aussie’ remains closely tied to broader market trends, with investor sentiment continuing to favor riskier assets amid ongoing US dollar weakness.
New Zealand Dollar (NZD) rises with business confidence
The New Zealand dollar (NZD) found additional support today as the ANZ business outlook reported a slight improvement in sentiment.
This, combined with the risk-positive market environment, has helped the ‘kiwi’ continue its upward trajectory despite earlier concerns over domestic economic performance.
Pound (GBP) holds steady amid rate speculation
The pound (GBP) retained its strength at the start of the week as the market continues to digest last week’s robust UK PMI figures.
Investors remain cautious, however, as they await any new guidance from the Bank of England (BoE) later this week, which could influence GBP’s direction.
Euro (EUR) supported by German business sentiment
The euro (EUR) saw a slight uptick today, supported by better-than-expected results from Germany’s latest IFO business climate survey.
While risk-on flows continue to weigh on the safe-haven appeal of the euro, the positive domestic data has helped to prevent significant losses for the single currency.
US Dollar (USD) remains under pressure from rate cut expectations
The US dollar (USD) continued to struggle at the beginning of this week, as expectations of upcoming rate cuts by the Federal Reserve weighed heavily on the currency.
Investors are now looking towards upcoming US data releases, such as durable goods orders, for any signs that could alter the current market sentiment.
Canadian Dollar (CAD) steady with firm oil prices
The Canadian dollar (CAD) maintained its upward momentum as stable oil prices provided ongoing support for the commodity-linked currency.
With a quiet domestic data calendar, the ‘Loonie’ is likely to continue to be influenced by fluctuations in the oil market throughout the day.