Australian dollar (AUD) recovers amid uncertain market mood
The Australian dollar (AUD) wavered yesterday as a lack of impactful economic data and a mixed market mood left AUD without a clear direction.
While the ‘Aussie’ initially weakened, it managed to gain ground in the evening amid a cautiously upbeat market mood.
Turning to today, Australian economic data is absent from the calendar. As a result, market risk dynamics may drive AUD exchange rates.
New Zealand dollar (NZD) drops as consumer confidence slumps
The New Zealand dollar (NZD) fell yesterday after New Zealand household morale deteriorated far more than expected in the second quarter of 2026, with the consumer confidence index slumping to its lowest level since the third quarter of 2023.
Robust GDP figures for the first quarter of the year could boost NZD today, with growth accelerating from 0.2% to 0.9% at the start of 2026.
Pound (GBP) stumbles following UK inflation figures
The pound (GBP) fell yesterday as markets reacted to a cooler-than-forecast UK consumer price index.
Headline inflation held at 2.8% in May, rather than rising to 3%, and core inflation edged up less than anticipated. This dampened bets on a Bank of England (BoE) interest rate hike this year, which weighed on GBP.
Sterling could face significant turbulence today, with the Bank of England (BoE) decision and Makerfield by-election potentially infusing GBP with volatility. Overall, we could see the pound weaken.
Euro (EUR) subdued by USD correlation
The euro (EUR) faced modest pressure yesterday, with the single currency suffering from its negative correlation with the US dollar (USD), as the latter strengthened.
Meanwhile, a lack of Eurozone economic data left EUR lacking support.
With Eurozone data thin on the ground today, the single currency may struggle to find a clear direction.
US dollar (USD) firms amid strong retail data
The US dollar firmed yesterday as the latest US retail sales report beat forecasts.
Sales accelerated from 0.4% in April to 0.9% in May, above expectations for 0.5%, indicating that consumer spending is strong in the US.
USD investors may refocus their attention on Middle East developments today. We could see the ‘greenback’ waver ahead of the signing of the US-Iran peace deal on Friday.
Canadian dollar (CAD) remains pressured despite uptick in oil
The crude-linked Canadian dollar (CAD) was muted yesterday, with a modest recovery in oil prices failing to lift CAD, although it did help the currency avoid further losses against some of its peers.
Canada’s latest producer price inflation figures are due out today. Elevated factory gate inflation in May could support the ‘loonie’, if it boosts bets that the Bank of Canada (BoC) may need to
consider an interest rate hike later in the year.
Data releases
08:45 NZD GDP Growth Rate (Q1)
16:00 GBP Unemployment Rate (Apr)
16:00 GBP Makerfield By-election
21:00 GBP BoE Interest Rate Decision
22:30 CAD PPI (May)
22:30 USD Initial Jobless Claims (13/Jun)