Australian Dollar (AUD) tumbles amid Risk-Off Trade
The Australian Dollar (AUD) struggled to attract support during Monday’s session, as demand for the risk-sensitive currency was undermined by the ongoing coronavirus outbreak in Australia alongside a rebound in the US Dollar.
New South Wales has recorded a further 98 cases, and fifth death from the outbreak as premier Gladys Berejiklian warned that cases needed to fall substantially before the lockdown can end.
Looking ahead, the latest Reserve Bank of Australia (RBA) meeting minutes could cause AUD to weaken further if the bank strikes a more cautious tone surrounding Australia’s economic recovery.
Pound (GBP) Weakens on Coronavirus Worries
The Pound (GBP) found itself weakening against many of its peers during Monday’s session as concerns over the UK’s lockdown easing worried investors.
Sterling struggled to attract investors despite a further reopening of the UK economy, as experts warn restrictions along with social distancing measures have been eased too soon.
In the absence of any notable GBP data today, Sterling is expected to be driven by any further coronavirus developments as UK gets used to the ‘new normal’.
Euro (EUR) Firms on USD Strength
The Euro (EUR) initially weakened yesterday as the single currency’s strong negative correlation with the US Dollar saw it struggle throughout the Asian trading session.
However, the single currency rebounded during the European session, after the US Dollar suffered a modest pullback allowing the Euro to climb higher against many of its major rivals.
Coming up the Eurozone’s largest economy, Germany’s producer price index could provide further support to EUR exchange rates, if it prints positively in June.
US Dollar (USD) Supported on back of Risk-Off Trade
The US Dollar (USD) found itself supported during the start of the week, bolstered by a souring market mood, amidst an ongoing resurgence in global coronavirus cases.
However, these gains were tempered somewhat by a weakening of US Treasury yields after US markets opened for the day.
Looking ahead, the US Dollar may maintain its positive trajectory if the global market mood continues to sour tomorrow.
Canadian Dollar (CAD) Tumbles on Weakening Oil Prices
The Canadian Dollar (CAD) weakened throughout yesterday’s trading session, a further drop in oil prices following the OPEC+’s latest deal limited the appeal of the commodity-correlated ‘Loonie’.
New Zealand Dollar (NZD) Stumbles amid Risk-Off Mood
The New Zealand Dollar (NZD) stumbled during Monday’s session, with the ‘Kiwi’ being undermined by the prevailing risk-off mood.
Data Releases
Jul 20th 11:30 AUD RBA Meeting Minutes
Jul 20th 16:00 EUR German PPI (Jun) 1.1%