Australian dollar (AUD) supported by positive Chinese data
The Australian dollar (AUD) initially faltered on Monday, with the risk-sensitive currency being undermined by renewed uncertainty in the Middle East.
However, the ‘Aussie’ was able to post modest gains as the session went on, aided by positive inflation data from Australia’s largest trading partner, China.
In the spotlight for AUD investors today will be Australia’s latest consumer confidence index, with the Australian dollar poised to fall if sentiment continued to decline this month.
New Zealand dollar (NZD) slips in risk-off trade
The New Zealand dollar (NZD) ticked lower at the start of this week amid a cautious market mood.
In the absence of any notable domestic data, the ‘kiwi’ will likely remain at the mercy of market sentiment through today’s session.
Pound (GBP) dented by pressure on Starmer
The pound (GBP) got off to a subdued start this week amid fresh doubts over the future of Prime Minister Keir Starmer.
While Starmer delivered a defiant speech vowing to fight on, reports that a growing number of Labour MPs are pushing for his resignation left Sterling deflated.
UK political uncertainty is likely to remain the primary catalyst of movement for Sterling today, and may continue to suppress demand for the currency.
Euro (EUR) mixed amid muted trade
The euro (EUR) traded in a narrow range on Monday, with the single currency lacking clear direction amid an uncertain market mood.
This was compounded by the absence of any notable Eurozone economic indicators at the start of the week.
The release of Germany’s latest ZEW economic sentiment index may offer fresh direction for EUR today, with the euro likely to weaken if morale in the Eurozone’s largest economy continued to deteriorate this month.
US dollar (USD) firms as peace hopes dashed
The US dollar (USD) edged higher yesterday as hopes for an imminent US-Iranian peace agreement began to fade.
Recent peace optimism was dashed after US President Donald Trump branded Tehran’s response to a proposed peace framework as ‘totally unacceptable’.
Turning to today’s session, the spotlight is on the latest US consumer price index, with another acceleration of inflation potentially strengthening USD demand.
Canadian dollar (CAD) buoyed by rising oil prices
The commodity-linked Canadian dollar (CAD) strengthened on Monday as renewed tensions in the Middle East propelled global oil prices back above $100 a barrel.
Expect the ‘loonie’ to maintain a positive trajectory today if oil prices continue to appreciate.
Data releases
10:30 AUD Consumer Confidence (May)
11:30 AUD Business Confidence (Apr)
19:00 EUR German ZEW Economic Sentiment Index (May)
22:30 USD Inflation Rate (Apr)