Australian Dollar Mixed amid Disappointing Chinese Data

Australian Dollar (AUD) Mixed amid RBA Bets and Chinese PMIs

Friday saw the Australian Dollar (#AUD) endure mixed #trade, as a disappointing set of #Chinese PMIs dampened its appeal.

With neither services nor #manufacturing sector inspiring much confidence in the Chinese economy, interest rate hike bets picked up the slack. Economists now believe that the Reserve Bank of Australia (#RBA) will hike #rates during tomorrow’s meeting.

This morning, if the inflation gauge for June cools to 0.2% as #forecast, the ‘Aussie’ could weaken over the session.

New Zealand Dollar (NZD) Rallies amid Increased Consumer Confidence

The New Zealand Dollar (#NZD) climbed against most peers last Friday, following a surprise leap in consumer confidence.

June’s reading from ANZ came in at 85.5, significantly above forecasts of a fall to 77. Furthermore, elevated risk appetite seemed to serve the risk-sensitive ‘Kiwi’ well during the session.

A lack of data is on the cards for the ‘Kiwi’ today, meaning it could be unable to find clear direction.

Pound (GBP) Strengthens on Upbeat Market Mood

On Friday, confirmation that the UK #economy had avoided a winter recession provided initial cheer to the Pound (GBP).

Sterling then soared over the session as bullish trade swept across markets, allowing the increasingly risk-sensitive #Pound to capitalise on the #economic positivity.

This evening brings the final print of June’s manufacturing index. Could a revision catalyse volatility in Sterling?

Euro (EUR) Gains Capped by Muddled Inflation Data

The #Euro (#EUR) may have seen its gains capped last Friday following the Eurozone CPI. Headline #inflation cooled while core inflation ticked higher. Ultimately, both readings came in below forecasts.

However, the Euro enjoyed its negative trading relationship with the US Dollar (USD), with the former regaining ground as the latter stumbled.

The final Eurozone #manufacturing index reading is due this evening. Could a surprise to the upside boost EUR?

US Dollar (USD) Stumbles as Core PCE Price Index Cools

On the back of a surprise cooldown in the core PCE price index for May, the US #Dollar slumped at the end of last week’s trade.

With the indication that inflation may be losing its grip on the US, markets pared Federal Reserve rate hike bets and shifted to cheery trade. As such, the safe-haven ‘Greenback’ lost ground against most peers.

Owing to a dry data calendar, the ‘Greenback’ could be stuck within narrow boundaries over today’s session.

Canadian Dollar (CAD) Slides on Mixed GDP Data

Amid news that Canada’s economy stalled in April, the Canadian Dollar (#CAD) slumped against most peers last Friday, negating promising growth in May. The downside in USD likely added to CAD’s decline.

Oil price volatility could drive the crude-linked ‘Loonie’ today, due to a minimal slate of macroeconomic data.

Data Releases

Jul 3rd 09:00??AUD??Manufacturing PMI Final (Jun)??48.6

Jul 3rd 11:00??AUD??TD-MI Inflation Gauge (Jun)??0.2%

Jul 3rd 18:00??EUR??Manufacturing PMI Final (Jun)??43.6

Jul 3rd 18:30??GBP??Manufacturing PMI Final (Jun)??46.2