Market Overview
- Australian CPI y/y due today, we expect inflation to fall by 1.0%.
- The ECB could cut rates more cautiously into 2026 which could put the EUR under pressure.
- China have announced multiple “stimulus measures” to boost the economy.
- The NZD in theory should be trading a lot lower against the greenback, perhaps around 0.5800 levels, however the currency is being propped up by a weakening reserve.
- Record closes in US equity indices boost risk currencies.
- Conflicts in the Middle East has pushed up Crude Oil prices by 4% overnight to 71.50.
- The Bank of Japan (BoJ) will raise rates inline with trending higher inflation.
- The New Zealand Dollar (NZD) has been the best performing currency over the last week while the Japanese Yen (JPY) was the worst performer.