Australian Dollar (AUD) Firms amid Upbeat Market Mood
The Australian Dollar (AUD) found itself steadily strengthening against many of its major rivals during yesterday’s session on the back of a pullback in the US Dollar.
The most recent flash Markit PMI figures from Australia released yesterday have shown a sustained growth in the Australian economy, albeit it at a softer pace, providing further support to the ‘Aussie’.
A quieter end of the economic week for the Australian Dollar will see investors keeping an eye on the global market mood today.
Pound (GBP) Supported by Flash UK PMI Figures
The Pound (GBP) found itself supported throughout much of yesterday’s European session following the latest flash Markit PMI figures from the UK for June.
As reported by IHS Markit, whilst growth in the UK’s private sector eased slightly during June the reading was still among the strongest monthly improvements in over 20 years.
Pound investors will look towards today’s Bank of England’s (BoE) interest rate decision which could provide fresh support for Sterling, assuming the banks forward guidance reflects the recent hawkish comments from policymakers.
Euro (EUR) Firms on Weakening US Dollar
The Euro (EUR) firmed during yesterday’s session as flash Markit PMI figures from the Eurozone paired with a broad weakness in the UD Dollar bolstered the appeal of the single currency.
The Euro’s negative correlation with the US Dollar had seen the Euro edge higher for much of the day as USD continues to struggle.
Today will see the release of the German Ifo Business Climate survey for June which could provide fresh support for the Euro if morale improves in line with expectations.
US Dollar Weakens on back of Risk-On Mood
The US Dollar (USD) weakened during yesterday’s session as an upbeat market mood continues to limit US Dollar sentiment.
Yesterday’s flash Markit PMI’s from the US were not enough to bolster the appeal of the ‘Greenback’ as service sector activity slowed more than expected.
Today’s initial US jobless claims along with the final US GDP growth rate reading for Q1 could cause a resurgence in USD, if they print positively.
Canadian Dollar (CAD) Supported Despite Disappointing Retail Sales
The Canadian Dollar (CAD) strengthened during yesterday’s session despite Canadian retail sales falling into contraction. The weakening of the US Dollar provided the ‘Loonie’ with some modest support.
Preliminary Canadian manufacturing sales for May could today allow the Canadian Dollar to edge higher.
New Zealand Dollar (NZD) Strengthens on Risk-on Trade
The New Zealand Dollar (NZD) found itself heading higher during yesterday’s session despite a lack of notable data, as risk-on trade continues to support ‘Kiwi’ sentiment.
Data Releases
Jun 24th 18:00 EUR Ifo Business Climate (Jun) 100.6
Jun 24th 21:00 GBP BoE Interest Rate Decision 0.1%
Jun 24th 22:30 USD Initial Jobless Claims 380k
Jun 24th 22:30 USD GDP Growth Rate Final (Q1) 6.4%
Jun 24th 22:30 USD Durable Goods Orders (May) 2.8%