Australian dollar (AUD) rises amid risk-on trade
The Australian dollar (AUD) strengthened yesterday as a positive market mood boosted support for the risk-sensitive ‘Aussie’.
Investors brushed off Donald Trump’s latest tariff threats as posturing, with many commentators growing increasingly confident that the US will agree new trade deals before the delayed tariff deadline is reached.
Turning to today, risk appetite may remain the driving force behind AUD exchange rates. If this risk-on mood persists, the Australian dollar could climb.
New Zealand dollar (NZD) firms amid cheery trade
The New Zealand dollar (NZD) also enjoyed the upbeat market mood yesterday, with the riskier ‘kiwi’ rising against many of its rivals.
Aside from New Zealand’s latest business PMI released earlier this morning, any shifts in market sentiment could impact NZD today.
Pound (GBP) weakens amid UK economic anxiety
The pound (GBP) fell yesterday as a lack of new data left investors to dwell on recent warning signs around economic and fiscal risks in the UK.
This saw Sterling slip against many of its peers, despite an upbeat market mood.
For GBP investors, the spotlight falls on the UK’s latest GDP figures today. A modest rebound in growth in May could help underpin the pound.
Euro (EUR) softens despite EU-US trade hopes
The euro (EUR) also stumbled against its stronger rivals yesterday, with EUR unable to draw support from hopes that an EU-US trade agreement may be within reach.
The prevailing risk-on market mood dampened demand for the safer euro, while a later recovery in the US dollar (USD) also pressured EUR.
Germany’s latest wholesale prices data may affect EUR today. Signs of easing price pressures in the Eurozone’s largest economy may pressure the euro, if it increases bets on another European Central Bank (ECB) interest rate cut.
US dollar (USD) rebounds as jobless claims drop
The US dollar initially weakened yesterday, with USD demand dented by an improving market mood and signs of a dovish split at the Federal Reserve following the bank’s latest meeting minutes.
However, the ‘greenback’ rebounded in the evening after an unexpected decline in US jobless claims last week helped to temper bets on a Fed rate cut this month.
US economic data is in short supply today. As a result, risk appetite, tariff headlines and Fed rate cut bets could all impact USD.
Canadian dollar (CAD) mixed as oil prices soften
The crude-linked Canadian dollar (CAD) fell against its stronger peers yesterday as oil prices weakened, although the rebound in USD helped to boost CAD against its weaker counterparts.
Canada’s jobless rate is the focus for CAD investors today. Could an uptick in unemployment weigh on the ‘loonie’?
Data releases
08:30 NZD Business NZ PMI (Jun)
16:00 EUR German Wholesale Prices (Jun)
16:00 GBP GDP (May)
22:30 CAD Unemployment Rate (Jun)