Australian Dollar (AUD) Bolstered by Improved Risk Appetite
The Australian Dollar (AUD) appreciated through yesterday’s session, as prevailing risk-on mood, bolstered the appeal of the risk-sensitive ‘Aussie’.
This upside in AUD was reinforced by Westpac’s consumer confidence index printed better than forecast, increasing from 107.2 to 108.8 in July.
However, ongoing concerns over Australia’s coronavirus outbreak did temper these gains somewhat.
With forecasts pointing towards a further 30k jobs added to the domestic labour market during June, the Australian Dollar could find additional traction following the publication of Australia’s latest jobs report this morning.
Pound (GBP) Trends Higher as UK Inflation Beats Forecast
The Pound (GBP) returned to a stronger footing against its rivals during Wednesday’s session thanks to a stronger-than-expected uptick in the latest UK inflation data.
As the headline inflation rate picked up from 2.1% to 2.5% during June, a three year high, investors found cause for confidence, encouraging bets that the Bank of England (BoE) will raise interest rates sooner than first expected. While doubts over the outlook of the UK economy remain as coronavirus cases increase, Sterling was still able to make some gains.
The latest UK jobs report could provide further support to Sterling today, as economists forecast May’s figures will report a sharp uptick in wage growth, potentially boosting consumer spending in the months to come.
Euro (EUR) Mixed on Negative Eurozone Industrial Production Figures
The Euro (EUR) found itself mixed for much of yesterday’s session as the latest industrial production figures from the Eurozone which fell more than forecast.
With supply chain issues continuing to cause disruption across the bloc, the Euro has been unable to make any meaningful gains. This has left the Euro on the back foot against many of its major rivals, however a weakening US Dollar limited any significant losses for the single currency.
A lack of economic data from the Eurozone could today leave the Euro open to further losses against many of its counterparts.
US Dollar (USD) Falters amid Fed Powell Speech
The US Dollar (USD) slipped lower against its rivals during Wednesday’s session as a strengthening market mood caused USD exchange rates to pullback.
More so, dovish comments from Federal Reserve Chair Jerome Powell in prepared remarks for his testimony before Congress caused the ‘Greenback’ to weaken.
However, a further decrease in initial jobless claims could encourage the US Dollar to recover overnight.
Canadian Dollar (CAD) Dips Following Bank of Canada Interest Rate Decision
The Canadian Dollar (CAD) dipped during yesterday’s session following the latest Bank of Canada (BoC) interest rate decision. The bank chose to keep rates unchanged whilst highlighting that the spread of new coronavirus variants remains a real threat to Canada’s economic recovery.
Tonight’s ADP employment change figures from Canada could provide much needed support to the ‘Loonie’.
New Zealand Dollar (NZD) Buoyed by Hawkish RBNZ
The New Zealand Dollar (NZD) found support on Wednesday following the latest interest rate decision from the Reserve Bank of New Zealand (RBNZ), although the bank made no changes to interest rates, a more hawkish stance bolstered the appeal of the ‘Kiwi’.
Ahead of tomorrow’s set of inflation data, the New Zealand Dollar may struggle to escape some selling pressure if the global market mood sours.
Data Releases
Jul 15th 00:00 CAD Interest Rate Decision 0.25%
Jul 15th 11:30 AUD Employment Change (Jun) 30k
Jul 15th 16:00 GBP Unemployment Rate (May) 4.7%
Jul 15th 16:00 GBP Wage Growth (May) 7.1%
Jul 15th 22:30 CAD ADP Employment Change (Jun) 270k
Jul 15th 22:30 USD Initial Jobless Claims (10/Jul) 360k
Jul 15th 23:15 USD Industrial Production (Jun) 0.6%