Australian dollar (AUD) dips following GDP data
The Australian dollar (AUD) fell yesterday after Australia’s latest GDP figures revealed a steeper-than-expected slowdown.
GDP growth cooled to 0.3% in the first quarter of 2026, down from 0.9% in the previous quarter and below forecasts for 0.5%.
Today we have Australia’s latest trade figures along with a speech later on from Reserve Bank of Australia (RBA) Governor Michele Bullock. AUD investors may focus on the latter, with any dovish remarks likely to weigh on the ‘Aussie’.
New Zealand dollar (NZD) stumbles amid risk aversion
The New Zealand dollar (NZD) weakened yesterday as escalating tensions in the Middle East dampened the risk-sensitive currency’s appeal.
Looking ahead, a lack of domestic data today could leave the New Zealand dollar to trade on market risk appetite. Could a gloomy mood weigh on NZD exchange rates?
Pound (GBP) mixed as markets digest UK PMI
The pound (GBP) traded without a clear direction yesterday amid a mixed response to the UK’s final services PMI for May.
Although the PMI was revised higher, printing at 49.3 rather than 47.9, this still represented the first contraction in activity since April 2025.
Overnight, Bank of England (BoE) Governor Andrew Bailey is set to deliver a speech. If he reiterates that he’s willing to temporarily tolerate above-target inflation to protect the UK economy, Sterling may face headwinds.
Euro (EUR) subdued following PMI results
The euro (EUR) was similarly uncertain on Wednesday, as the final Eurozone PMI was also revised higher but still pointed to a downturn in activity.
Stronger-than-forecast Eurozone producer price inflation offered little support to EUR, with the common currency also facing pressure from its negative correlation with the rising US dollar (USD).
A speech from European Central Bank (ECB) President Chirstine Lagarde could support EUR today, if she hints at the need for interest rate hikes. However, the euro could stumble later if the
Eurozone’s latest retail sales figures reveal a fourth consecutive month of contraction in April.
US dollar (USD) rises amid risk-off mood and strong data
The US dollar marched higher yesterday, with the safe-haven ‘greenback’ initially drawing support from a risk-off market mood.
USD extended these gains thanks to strong US economic releases. New jobs data pointed to a healthy rise in employment last month, while the ISM services PMI reported a faster-than-forecast acceleration in activity.
Aside from the latest US initial jobless claims figure, market risk appetite may be the defining factor for USD today. If the mood remains downbeat, the ‘greenback’ could climb.
Canadian dollar (CAD) flat despite rising oil and positive data
The Canadian dollar (CAD) traded mostly sideways yesterday, with the crude-linked currency struggling to make gains despite rising oil prices and a better-than-forecast domestic services PMI.
With Canadian data thin on the ground today, oil price dynamics may drive CAD. If oil extends its upside, the ‘loonie’ may be able to push higher.
Data releases
11:30 AUD Balance of Trade (Apr)
15:00 AUD RBA Gov Bullock Speech
18:00 EUR ECB President Lagarde Speech
19:00 EUR Retail Sales (Apr)
22:30 USD Initial Jobless Claims (30/May)
01:40 GBP BoE Gov Bailey Speech