Australian dollar (AUD) fluctuates in mixed trade
The Australian dollar (AUD) initially lost ground on Friday in the face of negative risk flows.
However, the ‘Aussie’ was then able to catch bids through the European session, following reports of trade talks between US President Donald Trump and his Chinese counterpart, Xi Jinping.
Coming up, the focus at the start of this week will be China’s latest inflation figures. If China remained in a state of deflation last month, it’s likely AUD sentiment will falter.
New Zealand dollar (NZD) wavers amid shifting risk sentiment
The New Zealand dollar (NZD) also fluctuated through the end of last week in the face of a shifting market risk appetite.
In the absence of any notable domestic data, it’s likely the ‘kiwi’ will remain sensitive to market risk dynamics today. This could leave NZD exchange rates to slip if sentiment weakens in response to China’s inflation data.
Pound (GBP) sidelined by lack of data
The pound (GBP) was left adrift again at the end of last week amid the continued absence of any notable UK economic data.
Sterling also struggled to attract support as concerns over the ratification of a UK-US trade deal undermined recent UK economic optimism.
Expect Sterling to remain directionless at the start of this week as GBP investors await the release of the UK’s latest jobs figures on Tuesday.
Euro (EUR) pressured by USD strength
The euro (EUR) stumbled on Friday as it was undermined by its strong negative correlation with the US dollar (USD).
This dip in the single currency also came despite Eurozone GDP being revised higher in the first quarter.
With Eurozone data in short supply at the start of this week, EUR investors may turn their focus to ongoing EU-US trade talks. Any signs of progress could help to underpin the single currency.
US dollar (USD) climbs on mixed payrolls data
The US dollar closed last week’s session on a positive note, after the latest US non farm payroll report revealed the US economy added more jobs than expected last month.
While prior readings were revised lower, with 95,000 fewer jobs being added through March and April, May’s figures helped to further temper Federal Reserve interest rate cut bets.
These bets could help to sustain this momentum through today’s session, especially if market sentiment remains cautious.
Canadian dollar (CAD) buoyed by uptick in employment growth
The Canadian dollar (CAD) trended higher on Friday, after Canada’s own jobs data surprised to the upside, reporting that employment grew by almost 9,000 against forecasts for a 15,000 deficit.
Looking ahead, the commodity-linked ‘loonie’ may continue to appreciate at the start of this week if the recent oil-price rally persists.