Published on 2018-08-21 11:20
The greenback extended the renewed downside across its main competitors, weighed down by the US President Trump’s criticism of the Fed’s interest rates policy. Amidst broad US dollar selling, the Kiwi benefited the most and rallied despite downbeat New Zealand’s credit card spending’s data while the Euro was the next best performer, having hit a high of 1.1542 earlier this session. The higher-yielding currencies, the Aussie and Sterling, also moved higher, as the Asian equities traded firmer amid expectations of easing US-China trade tensions. Amongst the commodities, gold futures traded with sizeable gains above $1200 mark while copper futures also edged higher. Meanwhile, both crude benchmarks traded modestly flat heading into the US weekly fuel data due later on Tuesday.
Today the EUR calendar remains data-light for the second day in a row this Tuesday, with markets eagerly awaiting the UK public sector net borrowing data and CBI industrial order expectations for some fresh incentives. The North American session is also likely to be a thin showing, in absence of any first-tier macro news from the US docket while Canada sees the second-liner wholesale sales numbers at 1230 GMT. Later on, New Zealand’s fortnightly dairy auction results will be published by Fonterra around 2000 GMT, followed by the American Petroleum Institute’s weekly crude stockpiles report at 2030. Also, in focus remains the NZ Q2 retail sales report slated for release at 2245 GMT.