New Zealand’s consumer price index (CPI) for the second quarter of this year rose by 0.6 percent in the June quarter, in line with what market participants had anticipated. Almost half of the increase was due to short-term volatility in petrol prices, which were 5.8 percent higher on average over the quarter.
The USD/CNY currency pair is expected to trade in a range of 6.80-6.95 during the renewed US-China trade negotiations, which helps stabilize both domestic and regional market sentiment, according to the latest research report from Scotiabank.
The pound is moving lower sharply in Tuesday’s trading as the recovery got stalled on Monday, with price action forming a bearish engulfing candle, as last Friday’s support got cleared.
The focus is now on the Unemployment, and if it comes out much better than expected might provide support to the pound.
In emphasizing downside risks to the outlook, Powell has defused the immediate risks of a disruptive back-up in bond yields. This has put a cap on the broad dollar. Bond proxies in FX such as CHF and JPY have been spared a potential fixed income VAR shock.
Market Roundup
Economic Data Ahead
