Australian Dollar (AUD) Mixed as China to Ease Lockdown Measures
The Australian Dollar (AUD) initially firmed yesterday as the prospect of China easing its lockdown restrictions cheered AUD investors.
However, these gains faded later in the session as market risk appetite waned.
Turning to today’s session, the ‘Aussie’ could face an uphill battle as Australia’s latest GDP figures are expected to report domestic growth slowed in the first quarter of 2022.
New Zealand Dollar (NZD) Slides as Business Confidence Falls
The New Zealand Dollar (NZD) fell back on Tuesday following a surprise deterioration in domestic business confidence.
The ANZ business outlook index fell to -55.6 in May, its worst levels since the start of the Covid pandemic in April 2020.
Looking ahead, if the market mood remains downbeat the New Zealand Dollar may extend these losses through today’s session.
Pound (GBP) Subdued as Analysts Warn on BoE Rate Hike Bets
The Pound (GBP) stumbled yesterday as analysts warned that GBP investors may have been a little too aggressive in their Bank of England (BoE) interest rate hike bets.
Economists at Commerzbank suggested the UK government’s new stimulus package may not necessarily lead to the BoE continuing to raise rates over the summer.
The continued absence of any notable UK economic data may leave the Pound struggling to attract support again today.
Euro (EUR) Stumbles despite Strong Eurozone Inflation Figures
The Euro (EUR) retreated on Tuesday. The single currency retreating in spite of the Eurozone’s hotter-than-expected consumer price index reporting inflation in the bloc soared to a record 8.1% in May.
This downturn in the Euro was partly attributed to its strong negative correlation with the US Dollar as the latter rebounded sharply through yesterday’s session.
Coming up, EUR investors will look to a speech by European Central Bank (ECB) President Christine Lagarde for fresh impetus today, Will a hawkish outlook from Lagarde help to push the single currency higher?
US Dollar (USD) Rallies amid Souring Market Mood
The US Dollar (USD) strengthened against the majority of its peers yesterday as demand for the safe-haven currency was bolstered by deteriorating market risk appetite.
Reinforcing the upside in the ‘Greenback’ was a rebound in US Treasury yields.
The publication of the latest ISM manufacturing PMI could act for a headwind for the US Dollar later this evening, amidst forecast US factory sector growth will have slowed in May.
Canadian Dollar (CAD) Rises in Tandem with Oil Prices
The Canadian Dollar (CAD) continued to rally on Tuesday, with the oil sensitive ‘Loonie’ attracting support as crude prices soared in the wake of the EU’s Russian oil ban.
Looking ahead, CAD exchange rates may continue to climb today as the Bank of Canada (BoC) is expected to deliver another 50bps interest rate hike later this evening.
Data Releases
Jun 1st 11:30 AUD GDP (Q1) 0.7%
Jun 1st 18:00 EUR Manufacturing PMI (May) 54.4
Jun 1st 18:30 GBP Manufacturing PMI (May) 54.6
Jun 1st 19:00 EUR Unemployment Rate (Apr) 6.7%
Jun 1st 21:00 EUR ECB President Lagarde Speech
Jun 2nd 00:00 CAD BoC Interest Rate Decision 1.5%
Jun 2nd 00:00 USD ISM Manufacturing PMI (May) 54.5
Jun 2nd 00:00 USD JOLTS Job Openings (Apr) 11.4m