FX Update
Key Points:
- The Reserve Bank of New Zealand holds interest rates at 5.50%
- Japanese “core-core” inflation – (excluding food and energy) rises to 4.3%
- Gold has fallen to the lowest level since March- 1980 per ounce.
- Chinese Industrial production released down on expectations in the second quarter, with domestic indicators like real estate and demand for exports also taking hits.
- The US 30-year bond traded to 4.42% overnight breaking above last year’s high and matching 2011 levels. This is starting to weigh on equity markets with US indices all coming off recent highs.
- The British Pound (GBP) has been the strongest currency this week with the Australian Dollar (AUD) the worst performer.