Global Markets:
- Asian stock markets: Nikkei down 0.20 %, Shanghai Composite gained 1.35 %, Hang Seng fell 0.10 %, ASX rose 0.60 %
- Commodities: Gold at $1083 (-0.60 %), Silver at $14.41 (-0.70 %), WTI Oil at $45.50 (+0.75 %), Brent Oil at $49.70 (+0.35 %)
- Rates: US 10 year yield at 2.16, UK 10 year yield at 1.86, German 10 year yield at 0.61
News & Data:
- RBA Keeps Its Cash Rate On Hold At 2.00% As Expected
- Australia Trade Balance (Jun): AUD -2933 Mln (exp AUD -3000 Mln prev rev AUD -2677 Bln)
- Australia Retail Sales (MoM) Jun: 0.7% (exp 0.4% prev 0.3%)
- Australia Core Retail Sales (QoQ) Q2: 0.8% (exp 0.4% prev 0.7%)
- New Zealand ANZ Commodity Price Index (MoM) Jul: -11.2% (prev -3.1%)
- Japan Monetary Base (Jul): JPY 325.7 Tln (prev JPY 325.0 Tln)
- Australia ANZ Consumer Confidence 112.9 (prev 112.5)
- BoJ Dep Iwata: Do Not See Risks From Potential Fed Or BoE Rate Hikes — RTRS
- Iwata: BoJ Has Internal Discussions On Simulations For QQE Exit — BBG
Markets Update:
The Aussie Dollar was the best performing currency overnight, following better than expected Retail Sales data and the RBA rate decision. While it was expected that the RBA will leave rates unchanged, the statement from the central bank was less dovish than anticipated. AUD/USD jumped to 0.7330 briefly after the release. Meanwhile, NZD/USD remains weak and AUD/NZD sales are weighing on the Kiwi Dollar as well. NZD/USD fell to 0.6548 in the early Asian session and a test of the 0.65 support level seems likely. AUD/NZD is already up more than a 100 pips since the new trading week started, with the next major resistance now at 1.1230.
Upcoming Events:
- 08:00 BST – Spanish Unemployment Change
- 09:30 BST – UK Construction PMI
- 10:00 BST – Euro Zone PPI
- 15:00 BST – US Factory Orders
- 23:45 BST – New Zealand Employment Change
- 23:45 BST – New Zealand Unemployment Rate
