Global Markets:
- Asian stock markets: Nikkei up 0.65 %, Shanghai Composite fell 0.70 %, Hang Seng declined 0.60 %, ASX 200 lost 0.30 %
- Commodities: Gold at $1329 (+0.05 %), Silver at $19.98 (-0.50 %), WTI Oil at $45.80 (-0.30 %), Brent Oil at $46.85 (-0.20 %)
- Rates: US 10 year yield at 1.56, UK 10 year yield at 0.82, German 10 year yield at -0.02
News & Data:
- RBA Minutes: Board to watch key data, adjust rates if needed; review of forecasts in August will help steer policy
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 114.9 (prev. 115.2)
- South Korea PPI (YoY) June: -2.7% (prev. -3.0%)
- Canada Official says G20 will discuss FX at the China meeting – RTRS
- Asian shares dip, crude oil extends losses – RTRS
- Yen at three-and-a-half-week low, kiwi tumbles after central bank housing proposals – RTRS
- Oil prices fall on oversupply concerns despite shale cuts – RTRS
Markets Update:
The New Zealand Dollar was the worst performing currency overnight after the RBNZ announced changes in its mortage lending rules. NZD/USD declined from 0.7120 to a low 0.7015. The currency has been under pressure since Monday following the weaker than expected New Zealand CPI release.
AUD/USD followed the NZD lower and declined from 0.7605 to 0.7510. 0.7650 has proven itself as strong resistance level once again and a daily close below 0.75 would confirm the top. Support is seen at 0.7460 and 0.74.
USD/JPY gave up some of its recent gains as most Asian stock markets declined overnight. It fell from 106.30 to 105.70; support is noted at 105.00 and 104.60.
GBP/USD started the new trading day around 1.3270, but was not able to sustain the momentum from the NY trading session and fell back to 1.32 ahead of the Tokyo open. Similar price action was seen in EUR/USD, which declined from 1.1150 to 1.1080.
Upcoming Events:
- 09:30 BST – UK CPI
- 10:00 BST – German ZEW Economic Sentiment
- 10:00 BST – Euro Zone ZEW Economic Sentiment
- 13:30 BST – US Building Permits
- 13:30 BST – US Housing Starts
