Australian Dollar (AUD) Benefits from Upbeat Market Mood
The Australian Dollar (AUD) was able to rally at the start of the week thanks to a more upbeat market mood, in spite of the ongoing lockdown in Sydney.
Whilst the latest manufacturing PMI from Australia had shown growth softened in the sector during July, it wasn’t enough to limit the ‘Aussie’s’ appeal.
Today, the latest interest rate decision from the Reserve Bank of Australia is expected to be the main catalyst for movement in AUD exchange rates. If the bank continues to strike a dovish tone, then the Australia Dollar could weaken.
Pound (GBP) Muted on Lacklustre Manufacturing PMI
The Pound (GBP) was rangebound against many of the majors during Monday’s session as a lacklustre manufacturing PMI from the UK offered limited support to Sterling.
Whilst the latest manufacturing PMI came in at 60.4, meeting forecasts, supply-chain issues continue to disrupt growth in the sector.
In absence of any notable economic data, Pound investors will look towards any further domestic coronavirus developments from the UK today.
Euro (EUR) Supported by Impressive German Retail Sales
The Euro (EUR) found itself ticking higher yesterday as a better-than-expected rise in German retail sales strengthened the single currency.
Investors had expected to see a modest downturn in retail sales on the month, but were pleasantly surprised by a 4.2% expansion of sales growth. More so, the latest manufacturing PMI from the Eurozone softened less-than-expected providing additional support to the Euro.
Today, an absence of economic data will see investors keeping an eye on any coronavirus developments across the Eurozone to drive movement in EUR exchange rates.
US Dollar (USD) Struggles for Direction on ISM Manufacturing PMI
The US Dollar (USD) struggled for direction during Monday’s session as a worse-than-expected ISM manufacturing reading dampened the appeal of the ‘Greenback’.
A more upbeat market mood also weighed on USD exchange rate, leaving the US Dollar open to losses against many of the majors during the start of this week’s trade.
Overnight the release of the latest US factory orders could provide the US Dollar with fresh support if the figures meet forecasts of 1%.
Canadian Dollar (CAD) Mixed as Oil Prices Slide
The Canadian Dollar (CAD) was mixed throughout yesterday’s session as oil prices slid on the back of a slip in factory activity in China, limiting the appeal of the commodity-correlated ‘Loonie’.
Overnight, the latest manufacturing PMI from Canada is expected to give fresh impetus for the Canadian Dollar to push higher.
New Zealand Dollar (NZD) Supported by Risk-On Market Mood
The New Zealand Dollar (NZD) found some support at the start of the week as the mood of the global market began to improve.
An absence of economic data from New Zealand today will see NZD exchange rates continue to be driven by the market mood on Tuesday.
Data Releases
Aug 3rd 14:30 AUD RBA Interest Rate Decision 0.1%
Aug 3rd 23:30 CAD Markit Manufacturing PMI (Jul) 57
Aug 4th 00:00 USD Factory Orders (Jun) 1%