New Zealand Q2 retail sales rose just 0.1% as supposed to +2.6% previous quarter. Market was expecting a rise of 0.5%. That number sent market fleeing away from Kiwi – Nzd fell to 0.6539 and pushed AudNzd to high of 1.1265. AudUsd is bid but encountered supply in the 0.73-eighties. Even RBA Deputy Governor Christopher Kent’s remarks on the labour market developments failed to challenge the sellers. There should be more offers higher and there is a Aud1.35bn notional worth of 0.7400 strikes rolling off today NY cut.
Article in Kathimerini said Greek creditors are praising Athens’ cooperation ahead of Eurogroup meeting in Brussels. Me too, I praise them for their audacity to keep borrowing. But can’t really blame them, free money keeps pouring.
UsdJpy slipped into tight range – well, it’s Obon Week after all. UsdJpy buyers are awaiting near 123.80-124.00; light selling into 124.50’s and better at 124.90-125.00.