Australian Dollar Bolstered by Surprise Growth in China’s Manufacturing Sector

Australian Dollar (AUD) Climbs as Chinese Manufacturing PMI Improves

A surprise return to growth in China’s manufacturing sector lifted the Australian Dollar (AUD) yesterday.

The risk-sensitive ‘Aussie’ also found support from a bullish #market mood on Thursday. A sharp drop in iron ore prices capped AUD’s gains, however.

Looking to today, #AUD could gain ground if the mood remains risk-on. On the other hand, further weakness in the price of iron ore could weigh on the ‘Aussie’.

New Zealand Dollar (NZD) Treads Water despite Risk-On Mood

The New Zealand Dollar (#NZD) traded narrowly on Thursday amid thin trading conditions.

Weaker commodities prices pressured the resource-linked ‘Kiwi’, although an upbeat market mood offset the downside.

Today could see NZD regain lost ground if #investors continue to gravitate towards riskier assets.

Pound (GBP) Boosted by BoE Bets

Bank of England (BoE) rate hike bets kept the #Pound (#GBP) buoyed yesterday, with markets continuing to price in multiple interest rate rises.

However, confirmation of a contraction in UK #manufacturing activity capped GBP’s upside.

Today, an ongoing lack of British economic data may see Sterling trade in a narrow range.

Euro (EUR) Mixed following Cooler-than-Forecast Inflation Data

The #Euro (#EUR) faced mixed movement yesterday, with cooler-than-forecast #inflation figures dampening European Central Bank (ECB) rate hike bets and denting the single currency.

EUR resisted losses thanks to hawkish comments from ECB President Christine Lagarde. Weakness in the US Dollar (#USD) and positive employment data also helped the Euro.

With no data for the Euro today, ECB bets could drive EUR movement. Could yesterday’s weaker inflation #data hit the Euro with lingering headwinds?

US Dollar (USD) Falls despite Signs of Tight Labour Market

The US Dollar (USD) came under renewed selling pressure on Thursday. Dovish comments from Federal Reserve officials and a risk-on market mood weighed on the safe-haven #currency.

On the other hand, surprisingly robust jobs data limited more drastic losses for the US #Dollar. Jobless claims and employment change figures both surprised to the upside.

This evening’s high-impact employment data could weigh on USD if it prints as forecast. #Unemployment is #forecast to rise alongside a drop in non-farm payrolls.

Canadian Dollar (CAD) Weakens as Factory Activity Shrinks

The commodity-linked Canadian Dollar (CAD) wobbled lower yesterday amid mixed oil prices and a surprise contraction in Canadian manufacturing activity.

Amid a lack of data today, CAD’s correlation to oil and the US Dollar could drive most movement. Will weaker US jobs data see the ‘Loonie’ soften?

June 2nd 22:30?USD??????Unemployment Rate (May)????????3.5%

June 2nd 22:30?USD??????Non Farm Payrolls (May)?????????????190,000

June 2nd 22:30?USD??????Average Hourly Earnings (May)?4.4%