- Anglo American, one of the biggest mining companies, stated they will be selling significant parts of their business and cutting its work force which has added to the price pressure on commodities worldwide. However, this had little effect on the New Zealand dollar, although it is a commodity-linked currency. We actually saw the currency strengthen due to the big day ahead, with the Reserve Bank of New Zealand’s rate statement last night, when, as expected, they cut their interest rate to 2.5%. It is a busy day for the currency as today we expect to see further movement due to inflation and employment data, with the unemployment rate expected to rise by a percent from 5.9%. This is hawkish for the currency and could cause weakness across the board.
- We saw better-than-expected Australian home loan data yesterday. This was encouraging news, alongside a more positive note in regards to Australia’s economy with the Reserve Bank of Austalia Governor Glenn Steven reporting healthier employment figures. The Australian dollar gained strength against its rivals (sterling in particular). It is a quieter day today for the Australian economy, but the recent rate decision can still cause reverberations within the economy.
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