New Zealand Dollar (NZD)

The RBA remained on hold at 4.10% last Tuesday, as Governor Lowe said that they need more time to assess the impact higher interest rates have on the economy. The decision was seen as dovish and weighed on the Aussie. The market expects the bank to remain on hold until the end of the year. Australia’s trade surplus narrowed less than expected but import and export growth rates contracted. Economic recovery in China is facing challenges as the NBS and the Caixin manufacturing PMI figures for July showed that economic activity contracted. On Tuesday, when we get China’s trade data for July, market participants will get a clearer image of how the Chinese economy is faring.