Financial Markets Wrap

USD (still) under pressure in July

Jason Wong -
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- Risk sentiment positive in July, supporting commodity currencies
- NZD reached a 26-month high, aided by soft USD backdrop
- TWI up a more modest 0.5%, with NZD weaker against AUD and EUR

June a Good Month for Commodity Currencies

Jason Wong -
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- NZD, AUD and CAD all performed well in June
- Signs of coordinated major central bank guidance later in the month…
- …causes a significant sell-off in the rates market

An Overdue Recovery in NZD

Jason Wong -
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- NZD performs strongly in May, up 2½% on a TWI basis
- Supported by high risk appetite and rising NZ export commodity prices
- Downside bias to bond rates