Australian Dollar (AUD) Firms amid China Lockdown Easing
The Australian Dollar (AUD) trended broadly higher on Wednesday, with the China proxy ’Aussie’ finding support as Beijing eased lockdown measures in Shanghai and other areas of the country.
This uptick in the ‘Aussie’ was reinforced by the publication of Australia’s latest GDP figures, after reporting a stronger-than-expected expansion of growth in the first quarter.
Coming up, the focus today will be on Australia’s latest trade figures. Will another robust trade surplus help to boost the ‘Aussie’.
New Zealand Dollar (NZD) Fluctuates amid Shifting Market Risk Appetite
The New Zealand Dollar (NZD) initially stumbled yesterday, with the currency being pressured by a tepid market mood, before rallying through the European trading session amid improving risk appetite.
In the absence of any notable NZD data releases today, the ‘Kiwi’ is likely to remain sensitive to market risk sentiment.
Pound (GBP) Stumbles amid UK Political Jitters
The Pound (GBP) fell back on Wednesday, with GBP investors unnerved by the possibility Prime Minister Boris Johnson could soon face a vote of no confidence.
This came as the number of Conservative MPs publicly calling for the PM’s resignation in the wake of the ‘partygate’ scandal continued to grow.
With UK markets closed for the remainder of the week for the extended Jubilee weekend, thin trading conditions could see the Pound continue to drift lower.
Euro (EUR) Muted amid Ongoing Energy Concerns
The Euro (EUR) was mostly rangebound yesterday as EUR investors remained wary regarding European energy security after Russia moved to restrict gas exports to some suppliers in Germany, the Netherlands and Denmark.
However capping the Euro’s losses were the publication of the Eurozone’s latest jobs report, after April’s release revealed unemployment in the bloc remained at a record low in April.
With notable EUR data releases thin on the ground today, the Euro may continue to take cues from developments in Ukraine. Any escalation of the conflict could reflect negatively on the single currency.
US Dollar (USD) Buoyed by Robust PMI Release
The US Dollar (USD) firmed overnight on Wednesday as USD investors welcomed the latest ISM manufacturing PMI.
May’s index reported a surprise acceleration of growth in the US factory sector, buoying USD sentiment.
Looking ahead, the focus for USD investors today may be on the latest ADP employment figures. A robust reading could help to bolster expectations for Friday’s more influential non farm payroll release.
Canadian Dollar (CAD) Bolstered by BoC Rate Hike
The Canadian Dollar (CAD) rallied yesterday, after the Bank of Canada (BoC) raised interest rates to 1.5% and signalled it will continue to hike rates in the immediate future.
If oil prices continue to rise the commodity-linked ‘Loonie’ could strengthen again today.
Data Releases
Jun 2nd 11:30 AUD Trade Balance (Apr) AU$9.3bn
Jun 2nd 11:30 AUD Retail Sales (Apr) 0.9%
Jun 2nd 22:15 USD ADP Employment Change (May) 300,000
Jun 2nd 22:30 USD Initial Jobless Claims (29/May) 210,000
Jun 3rd 00:00 USD Factory Orders (Apr) 0.7%