Australian dollar (AUD) undermined by USD strength
The Australian dollar (AUD) stumbled through yesterday’s session as a strong uptick in the US dollar (USD) limited market risk appetite.
This offset positive risk flows stemming from reports that the US and China will extend their trade truce by another 90 days.
Looking ahead, movement in the ‘Aussie’ may be limited today, as AUD investors brace for the release of Australia’s Q2 inflation figures on Wednesday.
New Zealand dollar (NZD) slides in risk-off trade
The New Zealand dollar (NZD) also weakened on Monday due to the risk-averse market mood.
In the absence of any notable NZD data, it’s likely movement in the ‘kiwi’ will remain tied to market risk appetite today.
Pound (GBP) firms despite UK fiscal unease
The pound (GBP) opened this week’s session on positive footing, despite the absence of any clear catalyst for the move.
The uptick in Sterling was particularly surprising given the broader backdrop of UK fiscal jitters in light of recent underwhelming economic indicators.
Today sees the release of the Bank of England’s (BoE) latest consumer credit figures, with the pound potentially coming under pressure if June’s data points to a weakening of household spending.
Euro (EUR) retreats as EU-US trade deal disappoints EUR investors
The euro (EUR) initially strengthened on Monday, following news that the EU and the US had finally reached a trade agreement over the weekend.
However, this initial optimism didn’t last, with the euro relinquishing its early gains during the European session as EUR investors were ultimately unimpressed by the details of the deal.
Movement in the euro may be muted today, with the Eurozone’s preliminary GDP figures for the second quarter due for release tomorrow.
US dollar (USD) rallies on US trade deal relief
The US dollar got off to a strong start this week as the EU-US trade framework came as a welcome relief to USD investors.
USD demand was also underpinned by growing bets that the Federal Reserve will keep US interest rates higher for longer, amid the continued resilience of the US economy.
Tuesday’s session could see the US dollar relinquish some of its recent gains as the latest US job openings and labour turnover survey is expected to report a fall in the number of job openings last month.
Canadian dollar (CAD) underpinned by rising oil prices
The Canadian dollar (CAD) trended broadly higher on Monday as the commodity-linked currency tracked a rise in oil prices.
Expect the ‘loonie’ to maintain its positive momentum if crude prices continue to rally through today’s session.
Data releases
18:30 GBP BoE Consumer Credit (Jun)
00:00 USD JOLTS Job Openings (Jun)