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Currency Market Analysis

Jun 30, 2021 | Currency Market Analysis

Global Themes

USD boosted as Covid fears grow in Asia

The US dollar jumped overnight sentiment around the region become more cautious as Covid cases grow.

An increase in restrictions in the Asia-Pacific, with Australia, Vietnam, Thailand and South Korea all introducing measures to control the virus this month, has hit sentiment in the region and also pressured commodity prices.

Gold fell 1.0% while copper lost 0.2%.

Commodity FX hit

The USDSGD gained 0.2%.

The Japanese yen gained with regional markets preferring the safe haven qualities of the Japanese yen.

The AUD was weaker in most markets with worries about new lockdowns in Brisbane and Perth hitting the market.

The NZD was the hardest hit after cautious commentary from the Reserve Bank of New Zealand.

China data

The focus shifts to Chinese data today with the manufacturing and services PMI numbers due at 9.00am.

Later, European inflation figures are released.

US data builds to a crescendo this week with the ADP jobs due tonight ahead of the all-important non-farm payrolls due on Friday night.

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