The NZD fell against the Pound and rose against the Yen as markets relax on expectations for a softer Brexit as a no-deal scenario fade.
AUD Gains on Surge in Housing Finance
The NZD dipped against the AUD yesterday on better than expected housing finance in Australia. Home loan growth in July rose 4.2% vs forecasts of a 1.5% increase. Mortgage approvals were at their highest levels in 4 years in July, largely due to record low interest rates and a relaxation of lending criteria which were reversing the housing slump that had slowed economic growth.
Positive GDP Provides Support for GBP
The Pound pushed higher overnight on the release of June’s GDP data showing it expanded 0.3% and beating forecasts of a 0.1% increase. The positive data pushed back fears of any immediate recession in the UK, however the political outlook remains uncertain.
News of a bill blocking a no-deal Brexit on 31 October also saw the GBP rise. UK PM Boris Johnson will ask parliament for a snap election which is likely be defeated in a vote which is expected on Monday. He will then suspend parliament until 14 October.
Data to watch today is China’s Inflation and Producer Prices and the Australian NAB Business Confidence report all released at 1.30pm today.
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