JPY lower, AUD & NZD too.
Not helped by a weak fix for CNY (lowest from the onshore yuan since November 21 last year).
The outlook for the NZD includes the potential for a Reserve Bank of New Zealand rate cut by perhaps the end of this year. New Zealand’s economy has slumped badly and the RBNZ is looking for excuses to cut (IMO).
On AUD, I noted yesterday the news that one of Australia’s ‘big four’ lenders, the National Australia Bank, had cut its fixed rate (3 years) mortgage by 60bps. This has raised the chatter of an RBA rate cut sooner rather than later (most estimates are near towards the end of this year). I should add the caveat that the RBA meet on August 5 and 6, after Q2 CPI data is released on July 31. If the CPI is high it’ll cloud rate cut projections.
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NZD/USD hourly chart:
This article was written by Eamonn Sheridan at www.forexlive.com.
