Australian Dollar (AUD) Weakens on Downbeat Market Mood
The Australian Dollar (AUD) fell against its peers midweek, as a risk-off trading mood subdued the perceived-riskier currency.
Despite a better-than-expected increase in Australia’s retail sales for the month of May, global recession concerns dominated market sentiment, pressuring the ‘Aussie’.
Chinese data may affect AUD today, given a lack of significant Australian data. If manufacturing growth increased in June as forecast, China’s proxy currency may climb.
New Zealand Dollar (NZD) Slides as Key Commodities Slump
The New Zealand Dollar (NZD) also stumbled on Wednesday as risk aversion sapped support for the currency.
ANZ business confidence may affect NZD exchange rates today – morale is expected to have fallen in June, potentially pushing the ‘Kiwi’ lower.
Pound (GBP) Tumbles on Inflationary Concerns, Brexit
The Pound (GBP) came under pressure yesterday as shop price inflation reached its highest level in almost 14 years.
Sterling sentiment then came under more pressure following a speech by Bank of England (BoE) Governor Andrew Bailey following his warning about a ‘very large real income shock’.
The focus for GBP investors today will be on the UK’s latest GDP figures. Will a revision to the finalised growth figures for the first quarter spur some volatility in the Pound?
Euro (EUR) Encounters Headwinds on German Inflation Data
The Euro (EUR) traded in a mixed range midweek, as conflicting trading stimuli pressured the single currency.
German inflation printed below expectations, posing downside risks to the Eurozone’s ‘flash’ CPI estimate on Friday.
Losses for the Euro were mitigated, however, by comments from the European Central Bank (ECB) President Christine Lagarde, who considered the bloc is ‘unlikely to go back to an environment of low inflation’.
German retail data may affect trading today – if sales growth rebounded in May as expected, EUR could climb.
US Dollar (USD) Buoyed by Risk-Off Trading
The US Dollar (USD) was able to maintain support against the majority of its peers through Wednesday’s European session, on the back of hawkish comments from the Federal Reserve’s Jerome Powell.
The Fed Chair suggested the US economy can withstand higher interest rates and that the bank will prioritise combatting inflation against maintaining US growth.
Today, the PCE price index is expected to reveal US inflation slowed last month. If the data prints as expected, it could dent Fed rate hike bets and dent the US Dollar.
Canadian Dollar (CAD) Continues to Enjoy Crude Tailwinds
The Canadian Dollar (CAD) rose again on Wednesday as the price of WTI crude oil firmed amid concerns of tightening global supplies.
Canada’s April GDP release may affect ‘Loonie’ trading today – if the economy expanded as forecast, CAD could extend its upward trend.
Data Releases
30th June 11:00 NZD ANZ Business Confidence (Jun) -59
30th June 16:00 EUR German Retail Sales (May) 0.5%
30th June 16:00 GBP Current Account (Q1) £-39.8bn
30th June 16:00 GBP GDP Growth Rate Final (Q1) 0.8%
30th June 17:55 EUR German Unemployment Rate (Jun) 5%
30th June 19:00 EUR Unemployment Rate (May) 6.8%
30th June 22:30 CAD GDP Prelim (May) 0.1%
30th June 22:30 USD PCE Price Index (May) 6.7%
30th June 22:30 USD Initial Jobless Claims (18/Jun) 228K
30th June 23:30 EUR ECB Lagarde Speech N/A