Australian dollar (AUD) buoyed by strong trade data
The Australian dollar (AUD) strengthened yesterday after new trade data showed a 6% surge in Australian exports in June.
In addition, a broadly optimistic market mood boosted the risk-sensitive ‘Aussie’.
Today, risk appetite could be the defining factor for AUD exchange rates amid a lack of Australian data. If markets remain upbeat, the ‘Aussie’ could enjoy another positive session.
New Zealand dollar (NZD) rises amid risk-on market mood
The New Zealand dollar (NZD) also enjoyed the uptick in risk appetite yesterday, with the cheery mood lifting NZD against many of its peers.
Market risk dynamics remain the focus for NZD investors again today. Could a prevailing risk-on mood boost the ‘kiwi’?
Pound (GBP) rallies as markets reprice future BoE rate cuts
The pound (GBP) surged yesterday after the Bank of England (BoE) narrowly voted to cut interest rates by 25bps.
The decision was surprisingly close, with four of the nine members of the Monetary Policy Committee voting to leave interest rates unchanged. The bank also upwardly revised its inflation forecast, leading to a pullback in BoE rate cut bets.
Turning to today, Sterling could continue to draw support from the BoE decision. However, a lack of UK data could limit movement.
Euro (EUR) slides on worrying German data
The euro (EUR) fell sharply yesterday after German industrial production slumped by 1.9% in June, versus forecasts for a 0.5% decline.
Following Wednesday’s unexpected 1% contraction in factory orders, the latest data fuelled concerns about the health of the Eurozone’s largest economy.
With little Eurozone data due to be released today, the euro could end the week with muted movement.
US dollar (USD) falls amid upbeat mood
The US dollar (USD) stumbled yesterday as an improving market mood dampened the safe-haven currency’s appeal.
USD then tried to mount a recovery during the European trading session, but the latest US jobless claims figures capped the ‘greenback’. Both continuing and new jobless claims came in higher than forecast, indicating ongoing slack in the US labour market.
US economic data is in short supply today, potentially leaving the ‘greenback’ to trade on wider market trends. Could a risk-on mood and concerns about US economic policy see USD struggle?
Canadian dollar (CAD) slips alongside USD
The Canadian dollar (CAD) weakened in tandem with the US dollar yesterday, with a stronger-than-expected Ivey PMI failing to support the currency.
Looking forward, Canada’s jobs report for July is the focus for CAD investors today. An expected rise in unemployment could weigh on the ‘loonie’.
Data releases
22:30 CAD Unemployment Rate (Jul)