Australian Dollar Weakens as Coronavirus Cases Surge

Australian Dollar (AUD) Weakens Amid Coronavirus Outbreak

The Australian Dollar weakened during yesterday’s session as the delta variant of coronavirus surges in Australia.

Sydney re-entered a new two week lockdown to combat the outbreak of cases as a slower vaccination rollout across Australia leaves citizens susceptible to the virus.

The Australian Dollar could be open to further losses today if the global market mood continues to sour and the Australian coronavirus situation worsens.

Pound (GBP) Strengthens on UK Reopening Hopes

The Pound strengthened during yesterday’s trading session over the UK’s economic reopening from the coronavirus pandemic.

Yesterday afternoon newly-appointed health secretary Sajid Javid said there would be ‘no going back’ once restrictions are eased.

Pound investors will be looking towards any further positive coronavirus developments today to bolster the appeal of Sterling higher.

Euro (EUR) Steady on Eurozone Economic Optimism

The Euro was supported against many of its major rivals during yesterday’s European session as optimism grows surrounding the Eurozone’s recovery from coronavirus.

Despite coronavirus cases rising across Asia, the Eurozone’s economy continues to edge towards pre-pandemic levels.

Today will see the release of preliminary inflation rate figures from Germany, the Eurozone’s largest economy, which could see the single currency head higher.

US Dollar Firms on Dovish Federal Reserve

The US Dollar weakened during yesterday’s session as Federal Reserve (Fed) Chair Powell continues to strike a dovish tone surrounding the US’s economic recovery.

Yesterday’s risk-off mood was not enough to increase demand for the ‘Greenback’ as coronavirus cases surge across the globe.

If today’s speech from Richmond Federal Reserve Bank President Barkin reignites caution in the US Dollar the currency could suffer further.

Canadian Dollar (CAD) Firms on US Dollar Weakness

The Canadian Dollar firmed during yesterday’s session as the weakening US Dollar provided the ‘Loonie’ with fresh momentum against many of its major rivals.

New Zealand Dollar (NZD) Weakens on Risk-Off Mood

The New Zealand Dollar (NZD) found itself weakening during yesterday’s session as a lack of notable data paired with a risk-off mood limited the appeal of the ‘Kiwi.’

Data Releases

Jun 29th 19:00 EUR Consumer Confidence Final (Jun) -3.3
Jun 29th 22:00 EUR DE Inflation Rate YoY Prel (Jun) 2.3%
Jun 29th 23:40 EUR ECB President Lagarde Speech

Mathew Andrews

mathew.andrews@torfx.com


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