Australian dollar (AUD) supported by improving mood
The Australian dollar (AUD) firmed yesterday as a slightly more optimistic market mood supported the risk-sensitive ‘Aussie’.
Sentiment improved amid hopes that Israel-Lebanon peace negotiations could pave the way for fresh rounds of talks between the US and Iran. However, ongoing uncertainty meant risk appetite remained limited.
Australia’s latest GDP figures are the focus for AUD investors today. A slowdown in growth in the first quarter of 2026 could pressure the ‘Aussie’.
New Zealand dollar (NZD) rangebound despite cautious optimism
The New Zealand dollar (NZD) struggled to benefit from the uptick in risk appetite yesterday, with the ‘kiwi’ trading in a narrow range.
With notable New Zealand data absent from today’s calendar, market risk appetite could drive NZD movement.
Pound (GBP) mixed amid lack of data
An absence of UK economic data saw the pound (GBP) trade without a clear direction yesterday.
While the increasingly risk-sensitive UK currency rose against some of its safer peers, it struggled against its high-yield rivals.
Looking ahead, the UK’s final PMI results could act as a headwind for the pound during today’s session, if they confirm that activity in the vital services sector declined sharply last month.
Euro (EUR) muted in spite of rising inflation
The euro (EUR) also faced mixed movement yesterday, with EUR investors seemingly unimpressed by the Eurozone’s latest consumer price index.
The CPI figures revealed that inflation accelerated last month. However, as the data was broadly in line with market expectations, they did little to alter European Central Bank (ECB) interest rate expectations.
Weak PMI results could weigh on the euro today. However, a sharp rise in Eurozone producer price inflation may offset the downside, if it strengthens bets on an ECB rate hike next week.
US dollar (USD) trends lower despite positive jobs data
The US dollar (USD) softened yesterday as a cautiously upbeat tone in markets sapped the appeal of safer currencies.
The latest Job Openings and Labor Turnover Survey (JOLTS) failed to provide USD with meaningful support, despite showing a jump in vacancies in April.
Today we have the ADP employment change figure and ISM services PMI for May. Robust economic data could underpin USD exchange rates.
Canadian dollar (CAD) wobbles amid oil volatility
The Canadian dollar (CAD) faced choppy movement yesterday, with the commodity-linked currency tracking fluctuations in the oil market.
Canada’s latest PMI results could pressure CAD today, if a continued contraction in private sector activity reinforces concerns around the country’s economic health.
Data releases
11:30 AUD GDP Growth Rate (Q1)
18:00 EUR Composite PMI (May)
18:30 GBP Services PMI (May)
19:00 EUR PPI (Apr)
22:15 USD ADP Employment Change (May)
23:30 CAD Composite PMI (May)
00:00 USD ISM Services PMI (May)