EncoreFX’s daily market updates are written by our experienced and professional dealing team.
The Kiwi Dollar opens the day slightly down on yesterday in fairly light trading conditions due to the long weekend in the U.S. The Kiwi had initially made gains yesterday before running into profit taking later in the day. No domestic data in the calendar today, with the next significant event for the NZD being tonight’s global dairy auction, where another increase in prices is expected. Looking ahead, US FOMC meeting minutes and Australian employment data, due for release on Thursday, both have the potential to shake the NZD.
Aussie Firm Ahead of RBA Meeting Minutes
Across the ditch the Australian Dollar moved higher in line with the NZD before also running into profit taking later in the day. The RBA will this afternoon release the minutes from last weeks monetary policy meeting. The document is not expected to contain any surprises, especially after last weeks detailed overview from Governor Lowe.
GBP Higher Despite More Brexit Uncertainty
The British Pound was the best performer of major currencies overnight, gaining around 0.3%, despite more political movements clouding the Brexit outcome. Seven members of the UK Labour Party have split from the party and will now sit as independents in Parliament. The seven members are “anti Brexit” and reduces the odds of Prime Minister May getting her Brexit deal through parliament. The move increases the chances of an extension of Article 50, which will push out the timing of any Brexit resolution.
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