Australian Dollar (AUD) Rallies on RBA Interest Rate Decision
The Australian Dollar (AUD) firmed on Tuesday, following the Reserve Bank of Australia’s (RBA) interest rate decision and subsequent speech from Governor Philip Lowe.
Whilst the RBA kept interest rates unchanged at 0.1% the bank announced its asset purchase program will be reduced from AU$5bn AU$4bn from September, which extended some support to the ‘Aussie’.
The Australian Dollar could be open to losses today as a lack of notable economic data may limit the appeal of the ‘Aussie’.
Pound (GBP) Weakens on Lockdown Easing Concerns
The Pound (GBP) weakened during yesterday’s session on the back of concerns over the UK’s proposed lockdown easing on 19 July.
Whilst the easing will not officially be decided until the start of next week some experts have warned that easing restrictions too soon could leave to 100,000 cases of coronavirus a day in the UK.
Pound investors will be looking towards any further coronavirus developments to drive movement in GBP exchange rates today.
Euro (EUR) Weakens on Disappointing German Economic Data
The Euro (EUR) weakened against many of its major rivals during yesterday’s European session on the back of some lacklustre German economic data.
This included May’s factory order figures, which reported a shock contraction of order growth as well as the latest ZEW economic sentiment index, which revealed a sharp drop in morale this month.
Euro investors will look towards Germany’s industrial production figures for fresh impetus, with the single currency potentially slumping if these also disappoint.
US Dollar (USD) Rebounds Despite Underwhelming PMI Result
The US Dollar (USD) trended higher on Tuesday, despite the latest ISM non-manufacturing PMI, reporting growth in the US service sector softened more than expected last month.
This appeared to feed into the cautious mood with prevailed during yesterday’s European trading session and prompted investors the favour the safe-haven US Dollar.
Looking ahead, the publication of the minutes from the Federal Open Market Committee’s (FOMC) June policy meeting will be in the spotlight today. Will a reinforcing of the Federal Reserve’s recent hawkish shift send USD exchange rates higher?
Canadian Dollar (CAD) Weakens as Oil Prices Slump
The Canadian Dollar (CAD) retreated on Tuesday, with a sharp slump in oil prices undermining the appeal of the commodity-linked ‘Loonie’.
New Zealand Dollar (NZD) Struggles for Direction on Mixed Global Market Mood
The New Zealand Dollar (NZD) was mostly rangebound during yesterday’s session as a mixed market mood left ‘Kiwi’ without any strong directional bias.
Data Releases
Jul 7th 11:00 NZD ANZ Business Confidence (Jul) -1.0
Jul 7th 16:00 EUR German Industrial Production (May) 0.5%
Jul 8th 04:00 USD FOMC Minutes