Australian Dollar (AUD) Edges Higher on Australian Covid-19 Outbreak
The Australian Dollar (AUD) edged higher against its major rivals at the start of the week.
In the absence of any fresh domestic data releases, investors instead focused on coronavirus developments from Australia to support the ‘Aussie’ yesterday, especially as market risk appetite weakened. The Australian government announced that the Moderna coronavirus vaccine had been approved for use in the country from next month as Australia fights to boost its vaccination rate.
The ‘Aussie’ could find some support this morning if the NAB business confidence index meets forecasts and shows an uptick on the month.
Pound (GBP) Steady as Scotland’s Lockdown Measures Ease
The Pound (GBP) traded in a narrow range on Monday as the majority of Scotland’s lockdown restrictions came to an end.
Whilst Scotland is still implementing the use of face coverings, most of the nation’s lockdown measures were eased, as First Minister of Scotland Nicola Sturgeon commented: ‘This is the right moment to remove legal restrictions to try to get that greater normality back in our lives.’
An absence of economic data from the UK will today see investors keeping an eye on any further domestic coronavirus developments.
Euro (EUR) Lacks Direction Despite Impress German Trade Balance
The Euro (EUR) found some support on the back of a solid uptick in Germany’s latest trade surplus figures.
However, a mixed US Dollar (USD) limited the single currency for much of the day due to the negative correlation between the pairing.
Today the Eurozone ZEW economic sentiment index may add to the Euro’s problem as the index is forecast to have weakened in August.
US Dollar (USD) Softens as Non-Farm Payrolls Optimism Fades
The US Dollar (USD) had started the week trending higher on the back of optimism over Friday’s non-farm payroll figures.
Throughout the day however the US Dollar lost traction and found itself rangebound as investors awaited the latest JOLTs job opening figures. The job opening figures beat market expectations and provided the ‘Greenback’ with some fresh support.
In absence of any notable economic data from the US tomorrow, investors will instead look to on global developments to determine the direction of USD exchange rates.
Canadian Dollar (CAD) Weakens as Oil Prices Slide
The Canadian Dollar (CAD) failed to make any gains yesterday as oil prices slid by up to 4% during Monday’s session.
Without the support of any new Canadian economic data in the coming days, the Canadian Dollar may well remain on the back foot for much of this week.
New Zealand Dollar (NZD) Makes Limited Gains
The New Zealand Dollar (NZD) found some traction against a few of its rivals yesterday, in spite of a lack of domestic data.
Data Calendar
10th Aug 11:30 AUD NAB Business Confidence (Jul) 14
10th Aug 19:00 EUR ZEW Economic Sentiment Index (Aug) 45.6