Australian dollar (AUD) wavers as risk sentiment shifts
The Australian dollar (AUD) stumbled as this week’s session began, as a risk-off market mood weighed on the ‘Aussie’.
However, AUD was able to regain ground in the evening amid positive signs from the US and Iran amid the ongoing peace negotiations.
An expected decline in Australian consumer confidence in May could weigh on AUD today. However, the ‘Aussie’ could find support if the latest Reserve Bank of Australia (RBA) meeting minutes hint at further interest rate hikes over the coming months.
New Zealand dollar (NZD) firms as PMI beats forecasts
The New Zealand dollar (NZD) trended broadly higher yesterday, thanks to the improving market mood and a better-than-forecast domestic services PMI.
Looking ahead, market risk appetite could determine NZD’s direction through today’s session. Events in the Middle East may drive volatility.
Pound (GBP) regains ground as political jitters ease
The pound (GBP) strengthened yesterday, as market anxiety around the UK’s uncertain political outlook eased.
In addition, the IMF upgraded its growth forecast for the UK economy this year, citing ‘strong pre-war momentum’.
The UK’s latest jobs report is the focus for GBP investors today. Signs of a stabilising labour market could underpin the pound, with wage growth and unemployment both forecast to hold steady.
Euro (EUR) mixed amid lack of data
The euro (EUR) struggled to find a clear trajectory yesterday as a lack of Eurozone data left the currency to trade on wider market trends.
This saw the single currency soften against stronger peers while rising against its weaker rivals.
Turning to today, Eurozone economic data remains thin on the ground. As a result, the common currency may trade without a clear direction.
US dollar (USD) falters as profit-taking sets in
The US dollar (USD) snapped its winning streak on Monday, with the American currency falling afoul of some profit-taking following last week’s impressive gains.
Additionally, the cautious optimism surrounding ongoing US-Iran peace talks limited safe-haven demand.
The latest ADP employment change figure could influence USD exchange rates today, while investors will also be keeping an eye on the Middle East.
Canadian dollar (CAD) weakens as oil prices dip
The crude-linked Canadian dollar (CAD) stumbled yesterday, as oil prices eased amid the latest developments in the Middle East.
Canada’s latest consumer price index is the key focus for CAD investors today. A jump in inflation in April could boost the ‘loonie’ if it raises expectations for a more hawkish response from the Bank of Canada (BoC).
Data releases
10:30 AUD Westpac Consumer Confidence Index (May)
11:30 AUD RBA Meeting Minutes
16:00 GBP Unemployment Rate (Mar)
22:15 USD ADP Employment Change Weekly
22:30 CAD Inflation Rate (Apr)