Australia
The Australian Dollar has been the weakest performing currency this week with it losing ground against all the major currencies, this includes the New Zealand Dollar. Wage Price Index released at the expected 0.6% growth for the quarter to June but remains subdued with the yearly figure still at a mediocre 2.1% with this being just over of the 1.8% recorded for the same time last year. Unemployment numbers have released better than expected Thursday with the official unemployment dropping to an unexpected 5.30% cancelling out the poor number of -3,900 people added to the Australian labour force. Markets were expecting around 15,000 but the poor number has been overlooked by the new unemployment rate. Aussie Dollar received a boost jumping 40 points against the greenback.
New Zealand
Local data events have been thin this week for the New Zealand Dollar with markets awaiting NZ Producer Price Index Friday. A mixed bag with currency strength the kiwi is marginally stronger against the Pound and Euro and surprisingly the Australian Dollar. The New Zealand Dollar is one of the first currencies to capitalise on sentiment linked geopolitical news but this week we have not seen anything to get excited on. Fears on financial contagion in Turkey have kept markets at low’s with the kiwi still looking heavy. Equity markets and commodities have all traded lower with Crude oil leading the way down over 3.00%. Read more