Australian Dollar (AUD) Heads Higher as Australia Coronavirus Situation Closely Watched
The Australian Dollar (AUD) strengthened on Thursday after Wednesday’s US Federal Reserve monetary policy meeting. The resulting pullback in the US Dollar (USD) left room for the ‘Aussie’ to appreciate.
However, the ongoing coronavirus outbreak in Sydney is being closely watched by investors as New South Wales Premier, Gladys Berejiklian warned that the situation would get worse before it got better.
Today, a lack of notable economic data from Australia will see AUD exchange rates driven by the global market mood before the weekend.
Pound (GBP) Steady on UK Coronavirus Developments
The Pound (GBP) was steady during yesterday’s session as positive coronavirus developments from the UK kept Sterling appealing.
Whilst the UK government look to reopen the country’s borders to fully-vaccinated EU and US citizens, any gains were capped as an absence of economic data from the UK limited movement in GBP exchange rates.
Looking ahead, Sterling investors are likely to focus towards any further coronavirus developments before the weekend.
Euro (EUR) Capitalises on US Dollar Weakness
The Euro (EUR) rose on Thursday, capitalising on the US Dollar’s weakness following the US Federal Reserve meeting.
More so the unemployment rate in Germany, the Eurozone’s largest economy, edged lower than expected, while Germain inflation print above expectations.
Today’s preliminary GDP and inflation figures from across the Eurozone could drive the single currency higher if the data shows that the Eurozone’s economic recovery from the pandemic is well under-way.
US Dollar (USD) Sinks on Dovish Federal Reserve
The US Dollar (USD) weakened on Thursday as a dovish Federal Reserve and disappointing economic data undermined USD demand.
The Fed’s dovish stance dampened the appeal of the ‘Greenback’ for much of the day, with the downside in the US Dollar then reinforced by a weaker-than-expected US GDP print.
Looking ahead, the US Dollar could attempt to recover later tonight if US personal spending accelerated as expected last month.
Canadian Dollar (CAD) Buoyed by Rising Oil Prices
The Canadian Dollar (CAD) was mixed for much of Thursday’s session as rising oil prices, which hit $75 a barrel, kept the commodity-correlated ‘Loonie’ broadly appealing.
New Zealand Dollar (NZD) Supported by Risk-On Trade
The New Zealand Dollar (NZD) was able to head higher yesterday as a strengthening market mood and broad weakness in the US Dollar bolstered the appeal of the ‘Kiwi’.
Data Releases
Jul 30th 18:00 EUR German GDP (Q2) 2%
Jul 30th 19:00 EUR GDP (Q2) 1.5%
Jul 30th 19:00 EUR Inflation Rate (Jul) 2%
Jul 30th 22:30 CAD GDP (Jun) -0.3%
Jul 30th 22:30 USD Personal Spending (Jun) 0.7%