A quiet start to the week for the Kiwi Dollar, barely moving from yesterdays opening level. Commodity currencies were generally lower with both the AUD and CAD losing ground overnight. The main focus for the local market this week will be GDP numbers on Thursday morning, while we also have another Global Dairy Trade auction early tomorrow morning. In other market news, global equity markets have lost ground, with the most significant falls seen in Europe, with most Indexes losing around 1%.
The Aussie Dollar moved lower amid growing concerns over Chinese economic growth. The AUD added to its losses from last week touching on a 12 month low, which has seen the NZD/AUD cross rate continue to rally. Today sees the release of the June RBA minutes, however this is not expected to have much impact on the currency.
The Pound was slightly weaker ahead of the BOE announcement later in the week. No rate change is expected but the market will be focused on the Bank’s outlook. Brexit negotiations and general political infighting continue to weigh on the currency. Some reports are now suggesting that Brexit negotiations won’t be concluded until November or December.
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