Aussie Slips Back on Policy Notes
Binary.com Daily Financial Review July 19th 2016
Morning Report: 10.30 London
- This morning, the Australian dollar is the big mover to the downside after the release of monetary policy meeting minutes from the RBA. Analysts have focused on the dovish implications from the release, causing widespread selling of the Aussie, with the AUD/JPY and AUD/USD down by over 1%.
- The NZD/USD is slipping lower in sympathy.
- There’s been a corresponding uptick in risk-off trading, with the US dollar testing the highs and USD/JPY slipping lower.
Coming up today:
- Coming up today we have UK CPI at 09.30, released alongside RPI and PPI output.
- German ZEW economic sentiment follows at 10.00, alongside pan-European ZEW sentiment.
- Following this, we have US building permits and housing starts.
- MPC member Broadbent speaks at 15.05.
- The Australian dollar is under pressure today just as attention turns back to the inherent weakness in the Chinese economy. GDP might be stabilising, but this appears to be driven increasingly by the government rather than private spending. How sustainable is this?
- With questions marks around the Aussie’s main benefactor, now could be a good time to catch further negativity in the AUD/USD.
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