The USD was mixed across the board, with no significant data being released, it took a back seat as cross pair data did the driving for the day. Today sees Wholesale Inventories m/m expect at 0.2% being released, a better print will see some strength come into the USD as data further confirms a healthy US. A worse than expected print will see dollar bears drive the USD lower.
NZD crosses should be watched today as major data is expected. The RBNZ will be releasing the official cash rate which is expected to be cut to 2.5% from 2.75%. This is largely priced in, but a number equaling expectation or a deeper cut will see NZD bears take the reins and driving the currency down. If the RBNZ does not cut, we will see the currency spike all around as NZD bears bail out and bulls jump in to drive price. Markets will also be watching for the press conference and press release as they look for further guidance by the RBNZ. A continued dovish tone will see the currency weaken further. The news for the Kiwi continues with the RBNZ Gov Wheeler due to testify. Irrespective of what happens, one thing is for sure, the Kiwi will see ample volatility throughout the Asian session.
The action from down under continues as Australia looks for positive data after todays better than expected home loans m/m figures which beet expectations coming in at a better -0.5% vs -0.1 failed to keep the AUD afloat. The rally from this data was short lived as markets await the unemployment rate and employment change figures, expected at 6% and -10k respectively. The data is expected to cause significant volatility as we see bears taking control as bulls exit their multi week positions which held the AUS up in recent weeks, in anticipation of the numbers. Disappointing numbers will see the AUD weaken significantly across the board as Australia's woes continue, a positive surprise will begin to cement confidence in the countries recovery.