Australian Dollar (AUD) Bolstered by Upbeat Market Mood
The Australian Dollar (AUD) pushed higher across the board on Thursday, on the back of a more upbeat market mood, and a weakening US Dollar (USD) during Thursday’s session.
More so, the Australian Dollar was able to find added support throughout the day as Australia’s trade surplus increased during June to a record high of AU$10.5bn.
AUD investors will look towards this morning’s release of the Reserve Bank of Australia’s (RBA) Statement on Monetary Policy to drive movement in the ‘Aussie’.
Pound (GBP) Rallies as BoE Signals ‘Modest Tightening’ of Policy
The Pound (GBP) rallied yesterday, in response to the Bank of England’s (BoE) latest interest rate decision.
Whilst no policy changes came into force, the bank took a more hawkish tone that first thought, after it signalled that a ‘modest tightening’ of policy may be necessary moving forward.
In the absence of notable economic data releases at the end of the week, the Pound will likely be driven by any further domestic coronavirus developments.
Euro (EUR) Under Pressure despite Rise in German Factory Orders
The Euro (EUR) faltered during Thursday’s European session despite a rise in German factory orders during June.
A mixed US Dollar alongside a strengthening Pound left the Euro struggling to make any significant gains against the majors during yesterday’s session.
If German industrial production figure shows a strong uptick on the month support for the single currency may rise heading into the weekend.
US Dollar (USD) Unable to Hold onto any Meaningful Gains
The US Dollar (USD) failed to make any headwind against the majors yesterday as a strengthening market mood paired with lacklustre initial US jobless claims did nothing to support the ‘Greenback’.
USD exchange rates began reversing any gains as initial US jobless claims fell less-than-expected, signifying a slowdown in the recovery of the US labour market.
Overnight, all eyes will be on the latest non-farm payrolls figures from the US which if meet forecasts of 870k, could bolster USD exchange rates.
Canadian Dollar (CAD) Mixed Ahead of Labour Market Data
The Canadian Dollar (CAD) had struggled to make any meaningful gains yesterday as markets awaited the latest employment change figures from Canada.
If the July unemployment rate falls from 7.8% to 7.4% as forecast, the mood towards the Canadian Dollar could improve heading into the weekend.
New Zealand Dollar (NZD) Makes Gains as Risk Appetite Recovers
The New Zealand Dollar (NZD) gained ground on Thursday in response to the broad weakness in the US Dollar (USD).
However, any deterioration in market sentiment could easily see the New Zealand Dollar reverse course due to a lack of economic data to bolster the ‘Kiwi’.
Data Releases
Aug 6th 11:30 AUD RBA Statement on Monetary Policy
Aug 6th 16:00 EUR DE Industrial Production (Jun) 0.5%
Aug 6th 22:30 CAD Unemployment Rate (Jul) 7.4%
Aug 6th 22:30 USD Non-Farm Payrolls (Jul) 870,000