Australian dollar (AUD) bolstered by positive market mood
The Australian dollar (AUD) closed last week’s session on a positive note, thanks to a positive shift in investor sentiment.
Risk appetite was supported by hopes for new stimulus measures in China as well as a pullback in the US dollar (USD).
Australian data is in short supply at the start of this week, which is likely to leave movement in the ‘Aussie’ tied to market risk dynamics today.
New Zealand dollar (NZD) firms in risk-on trade
The New Zealand dollar (NZD) also appreciated through Friday’s session, amid an increasingly optimistic market mood.
Kicking off this week’s session is the publication of New Zealand’s quarterly GDP figures, where a potential slowdown in consumer prices may apply pressure to the ‘kiwi’.
Pound (GBP) slides amid tax hike speculation
The pound (GBP) faltered at the end of last week, with Sterling sentiment being undermined by ongoing UK fiscal jitters.
Growing concerns over UK debt have many GBP investors speculating on the extent to which Chancellor Rachel Reeves will need to hike taxes again in the Autumn.
In the absence of any notable UK economic releases, the pound may struggle to find direction through the first half of this week.
Euro (EUR) bolstered by USD weakness
The euro (EUR) ticked higher on Friday as the single currency drew support from its negative correlation with the US dollar.
However, these gains remained modest in scope amid ongoing doubts over EU-US trade talks.
Turning to this week, movement in the euro may be limited at the start of the session as EUR investors await the European Central Bank’s (ECB) upcoming interest rate decision later.
US dollar (USD) slips as Trump blasts Powell
The US dollar stumbled at the end of last week, as US President Donald Trump launched a fresh attack on Federal Reserve Chair Jerome Powell.
Trump’s comments branding Powell as ‘truly one of my worst appointments’ revived concerns that the President may dismiss Powell and what this could mean for the future independence of the US central bank.
If these concerns persist, it’s likely the US dollar will remain on the defensive at the start of this week.
Canadian dollar (CAD) underpinned by oil price rally
The Canadian dollar (CAD) held its ground on Friday, as another uptick in oil prices helped to offset the currency’s positive correlation with the US dollar.
If crude prices continue to appreciate, the ‘loonie’ may continue to catch bids through the start of this week’s session.
Data Releases
08:45 NZD Inflation Rate (Q2)
22:30 CAD PPI (Jun)