Australian dollar (AUD) firms amid risk-on mood
The Australian dollar (AUD) rose yesterday as rising commodity prices and an improving market mood lifted the ‘Aussie’.
Risk appetite increased amid cautious optimism for a fresh US-Iran ceasefire, with Washington claiming that a deal could be struck over the next day.
Looking forward, Australia’s latest Ai Group industry index could support AUD today, if it shows an improvement in activity, as expected.
New Zealand dollar (NZD) finds footing as mood improves
The New Zealand dollar (NZD) was initially flat yesterday, although it managed to trend higher later in the session thanks to the rise in risk appetite.
Turning to today, the ‘kiwi’ could face pressure after new data revealed an increase in New Zealand unemployment in the second quarter.
Pound (GBP) mixed amid lack of data
The pound (GBP) lacked a clear direction yesterday as an absence of UK economic releases left the currency rudderless.
Amid the improving market mood, the increasingly risk-sensitive pound was able to edge higher against safe-haven peers, but it slipped against riskier rivals.
Today, the UK’s final services PMI could influence GBP. If it confirms that the country’s vital services sector returned to expansion in July, Sterling may attract fresh demand.
Euro (EUR) unsure in absence of data
The euro (EUR) also traded without a clear trajectory yesterday amid a lack of fresh Eurozone economic data.
As a result, the common currency faced uncertain, muted movement.
Confirmation that the Eurozone services sector returned to growth in July could support EUR today, although a weaker PPI reading could offset the upside.
US dollar (USD) subdued amid US-Iran hopes
The safe-haven US dollar (USD) softened slightly yesterday as hopes for a US-Iran ceasefire saw investors favour riskier assets.
New US data in the evening failed to provide USD with much support, as job openings declined and factory orders contracted in June.
The focus for USD investors today will likely fall on the latest ISM services PMI. If it shows an acceleration in service-sector activity in July, the ‘greenback’ could strengthen.
Canadian dollar (CAD) weakens as oil falls
The crude-linked Canadian dollar (CAD) fell in the latter part of yesterday’s session, as hopes for a ceasefire in the Middle East saw oil prices decline.
Turning to today, Canadian data is thin on the ground, potentially leaving the ‘loonie’ to trade on oil price dynamics once again.
Data releases
08:45 NZD Unemployment Rate (Q2)
09:00 AUD Ai Group Industry Index (Jul)
18:00 EUR Services PMI (Jul)
18:30 GBP Services PMI (Jul)
19:00 EUR PPI (Jun)
00:00 USD ISM Services PMI (Jul)