FX Update: Risk Improves

Market Overview

• Markets brace for another key week dominated by US inflation data and trade uncertainties.
• The New Zealand Dollar (NZD) forms a base above the psychological 0.6000 level.
• Non-Farm Payroll (NFP) came in hot surprising markets with a print of 139k new jobs compared with 126k expected. Unemployment stayed unchanged at 4.2%.
• The Canadian Unemployment Rate rose to 7.0% from 6.9% in the month of May.
• Chinese CPI data came in at -0.1% y/y in May vs -0.2% predicted indicating the third monthly drops this year.
• New Zealand Manufacturing increased to 2.4% in first quarter from 1.1% in the fourth quarter of 2024.
• Ahead of US/China talks this week in London Trump has given the go ahead to negotiate restrictions on the sale of technology and other products to China.
• The Australian Dollar (AUD) was the strongest currency last week on the main board while the Japanese Yen (JPY) has been the worst performer.