EncoreFX’s daily market updates are written by our experienced and professional dealing team.
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.
© Copyright - EncoreFX, 2018.The information in this post is provided for general information purposes only and has been prepared without taking into account any person’s objectives, financial situation or needs and, accordingly, it does not constitute personalised financial advice under the Financial Advisers Act 2008, nor does it constitute advice of a legal, tax, accounting or other nature to any person. Before acquiring any financial services or products from EncoreFX, you should consider the appropriateness of the information having regard to your own objectives, financial situation or needs. We recommend that investors seek advice from their usual adviser before taking any action. EncoreFX (NZ) Ltd is a registered Financial Services Provider (FSP 461386), and is a licensed derivatives issuer under the Financial Markets Conduct Act 2013. EncoreFX (NZ) Ltd has lodged a Product Disclosure Statement (PDS) for each of our derivatives with the Registrar on 21-Dec-2016. A copy of each PDS is available from us or from the Registrar at www.business.govt.nz/disclose.