Australian Dollar (AUD) Weakens as Australia Coronavirus Outbreak Worsens
The Australian Dollar (AUD) found itself weakening at the end of last week amidst rising concerns over the coronavirus outbreak in Australia.
It comes as New South Wales recorded a further 644 cases of the virus, and Sydney’s lockdown has been extended until the end of September. The vaccination rollout across the country remains slow and the outlook for Australia’s economy worries investors.
The start of this week will see Australian Dollar investors keeping an eye on the latest flash PMI figures from Australia to drive movement in AUD exchange rates.
Pound (GBP) Mixed on Disappointing UK Retail Sales
The Pound (GBP) found itself trading on the back foot on Friday following an unexpected fall in UK retail sales.
Retail sales dipped -2.5% during July, as the buzz surrounding the Euro 2020 competition wore off and consumers spent more money on services rather than goods.
Today, preliminary PMI figures from the UK are expected to indicate that growth slowed in the UK economy which could cause Sterling to stumble.
Euro (EUR) Dips as US Dollar (USD) Strengthens
The negative correlation between the Euro (Euro) and US Dollar was the main driver of movement in the Euro for much of Friday’s session, as the US Dollar pushed higher on the back of a souring market mood.
This left the Euro unable to advance in spite of Germany’s latest PPI release printing positively in July.
Flash Eurozone PMI’s will be eyed by investors today, if the bloc continues to report robust economic growth, then the single currency could find some support at the start of this week.
US Dollar (USD) Supported by Risk-Off Trade
The US Dollar (USD) remained well supported through Friday’s session as a cautious market mood bolstered the appeal of the ‘Greenback’.
Whilst an absence of economic data from the US capped any major gains for the US Dollar, the currency was able to stay broadly appealing before the weekend.
Movement in the US Dollar (USD) looks to be driven by flash PMI figures from the US today, although not as influential as the ISM PMI’s, the Markit figures are expected to give an indication into how the economy is performing.
Canadian Dollar (CAD) Steady as Canadian Retail Sales Rise
The Canadian Dollar (CAD) was rangebound at the end of last week on the back of positive Canadian retail sales data which helped the commodity-correlated ‘Loonie’ to offset any losses stemming from a drop in oil prices
New Zealand Dollar (NZD) Struggles as New Zealand Coronavirus Cases Rise
The New Zealand Dollar (NZD) found itself struggling during Friday’s session as coronavirus cases across the country rise and lockdown measures were extended.
Data Calendar
23rd Aug 09:00 AUD Markit Services PMI Flash (Aug) 42
23rd Aug 18:00 EUR Markit Composite PMI Flash (Aug) 59.8
23rd Aug 18:30 GBP Markit/CIPS Composite PMI Flash (Aug) 58.9
23rd Aug 23:45 USD Markit Composite PMI Flash (Aug) 59