Australian dollar (AUD) recovers following Chinese PMI
The Australian dollar (AUD) fluctuated yesterday, with the ‘Aussie’ initially sliding as AUD investors sought to book their profits following a surge during the previous US trading session.
However, the Australian dollar was able to regain some ground thanks to a better-than-forecast Chinese manufacturing PMI, with AUD/USD rebounding to a near eight-month high.
Looking ahead, a forecast recovery in Australian retail sales in May could keep AUD afloat through today’s session.
New Zealand dollar (NZD) rallies amid risk-positive trade
The New Zealand dollar (NZD) followed a similar trajectory to the ‘Aussie’ yesterday, initially slipping before rebounding amid a risk-on mood, with NZD/USD hitting a near nine-month high.
With no New Zealand data due for release today, the ‘kiwi’ could remain sensitive to shifts in market risk appetite.
Pound (GBP) unsure amid absence of data
Movement in the pound (GBP) was uncertain yesterday as a lack of notable UK economic data left Sterling rudderless.
The prospect of a rebellion among Labour MPs over proposed welfare cuts also seemed to dampen Sterling’s appeal, as they pointed to deep divisions in the governing party.
UK economic data is thin on the ground today, potentially leaving the pound to trade without a clear trajectory once again.
Euro (EUR) recovers as inflation edges higher
The euro (EUR) initially faltered yesterday amid a risk-on market mood but managed to rally during the European trading hours.
The rebound came amid an uptick in Eurozone inflation in June, along with EUR’s negative correlation with a weaker US dollar (USD).
Turning to today, if Eurozone unemployment held at a record low in May, as expected, the euro could catch bids.
US dollar (USD) briefly hits fresh three-year low
The US dollar touched a fresh three-year low yesterday as USD investors remain unnerved by Donald Trump’s ‘big beautiful bill’, as it could add an estimated $3.3tn to US national debt.
The ‘greenback’ managed to claw back some losses in the evening thanks to slightly better-than-forecast US data, including an unexpected rise in job openings in May.
The latest ADP employment change figures could impact USD today, with an expected acceleration in employment growth potentially lending the US dollar some support.
Canadian dollar (CAD) slips despite rising oil prices
The crude-linked Canadian dollar (CAD) weakened yesterday, with rising oil prices and resumed US-Canada trade talks failing to boost the currency.
Coming up, Canada’s latest manufacturing PMI could create headwinds for the ‘loonie’, as factory activity is expected to have remained in contraction last month.
Data releases
09:00 AUD Ai Group Industry Index (Jun)
11:30 AUD Retail Sales (May)
19:00 EUR Unemployment Rate (May)
22:15 USD ADP Employment Change (Jun)
23:30 CAD Manufacturing PMI (Jun)
00:15 EUR ECB President Lagarde Speech