Australian dollar (AUD) fluctuates as US-China trade talks begin
The Australian dollar (AUD) opened this week’s session on positive footing as optimism ahead of US-China trade talks in London helped buoy the currency.
However, the ‘Aussie’ relinquished a good portion of these gains overnight, as a rebound in the US dollar (USD) sapped market risk appetite.
Today’s session sees the release of Australia’s latest consumer and business confidence figures. If these report an improvement in morale, it could help to underpin AUD exchange rates.
New Zealand dollar (NZD) gains capped by shifting sentiment
The New Zealand dollar (NZD) found its initial gains trimmed yesterday, as a result of the fluctuating market mood.
Notable NZD data remains in short supply today, likely leaving the ‘kiwi’ to continue to be driven by wider market trends.
Pound (GBP) flat amid UK spending review jitters
The pound (GBP) continued to trade without a strong directional bias on Monday as GBP investors await a couple of key data releases later in the week.
The uncertainty surrounding the UK government’s upcoming spending review also ensured movement in GBP exchange rates remained minimal.
Expect Sterling to come under pressure today as domestic jobs data is expected to report the UK labour market continued to cool in April.
Euro (EUR) muted despite German fiscal stimulus speculation
The euro (EUR) got off to a subdued start this week, with the single currency being undermined by its negative correlation with the US dollar.
This offset growing speculation that Germany’s new government will unveil more fiscal stimulus measures when it publishes its first budget later this month.
In the absence of any impactful Eurozone data, the euro may remain highly sensitive to movement in the US dollar today.
US dollar (USD) rebounds on trade talk optimism
Trade in the US dollar was mixed on Monday, as the latest round of trade talks between the US and China took place in London.
The US dollar’s initial losses were erased during the US trading session as market participants appeared optimistic that the talks will help to defuse recent tensions.
USD exchange rates may trend higher today, depending on how successful the talks ultimately prove.
Canadian dollar (CAD) undermined by softer oil prices
The Canadian dollar (CAD) struggled to attract support at the start of this week as a softening of oil prices weakened the appeal of the commodity-linked currency.
If oil prices continue to slip through today’s session, it’s likely the ‘loonie’ may remain on the back foot.
Data releases
10:30 AUD Consumer Confidence (Jun)
11:30 AUD Business Confidence (May)
16:00 GBP Unemployment Rate (Apr)
16:00 GBP Wage Growth (Apr)