Australian Dollar (AUD) Retreats as Coronavirus Outbreak Worsens
The Australian Dollar (AUD) stumbled through yesterday’s session, as prevailing risk-off mood, limited the appeal of the risk-sensitive ‘Aussie’.
Australia’s deteriorating coronavirus situation also weighed on the ‘Aussie’ after South Australia became the latest state to enter lockdown.
With the latest preliminary Australian retail sales forecast to show a contraction during June, the Australian Dollar could extend its losses through today’s session as well.
Pound (GBP) Dips as Coronavirus Woes Worry Investors
The Pound (GBP) remains on the defensive against its rivals on Tuesday as a result of ongoing concerns over the coronavirus situation in the UK.
Whilst much of the UK enjoyed ‘freedom day’ on Monday with virtually all restrictions eased, experts warn that another lockdown could be imminent in the autumn months as new daily cases skyrocket.
An absence of economic data from the UK will likely see GBP investors keep an eye on any further domestic coronavirus developments today.
Euro (EUR) Mixed on US Dollar Strength
Trade in the Euro (EUR) was mixed for much of yesterday’s session as the latest producer price inflation from the Eurozone’s largest economy, Germany hit a 39-year high.
However, a strengthening US Dollar has left the Euro on the back foot against the ‘Greenback’, as the current market mood favours USD exchange rates.
Looking ahead, movement in the Euro may prove limited today as EUR investors brace for the European Central Bank’s (ECB) upcoming rate decision.
US Dollar (USD) Supported by Sour Market Mood
The US Dollar (USD) trended higher against the majority of its peers on Tuesday as a souring market mood caused USD exchange rates to strengthen.
As global coronavirus cases surge, and a risk-off mood prevails, investors have begun to increasingly favour the safe-haven ‘Greenback’ .
As such, there remains plenty of upside potential in the US Dollar, which is likely to extend its gains today, assuming that market sentiment continued to sour.
Canadian Dollar (CAD) Dips Following Fall in Oil Prices
The Canadian Dollar (CAD) dipped during yesterday’s session following a further fall in oil prices to a 2-month low, limiting the appeal of the commodity-correlated ‘Loonie’.
New Zealand Dollar (NZD) Weakens on Risk-Off Trade
The New Zealand Dollar (NZD) found little support on Tuesday as the global market mood sours on the back of rising coronavirus cases across the world.
Data Releases
Jul 21st 11:30 AUD Retail Sales (Jun) -0.5%
Jul 21st 16:00 GBP Public Borrowing (Jun) £-21.5bn