Aussie and Kiwi Declines

On Tuesday, the Australian and New Zealand dollars declines compared to their U.S. counterpart following the release of a flurry of statistics from both countries and the Reserve Bank of Australia left interest rates unmoved.

AUD/USD fell 0.31 percent to 0.7516, off the prior session’s one and a half week highs of 0.7544.

In an extensively predictable change, the Reserve Bank of Australia held its benchmark interest rate at 1.75 percent at the conclusion of its policy meeting on Tuesday.

However, Reserve Bank of Australia Governor Glenn Stevens stated the central bank stayed willing to act if needed, increasing assumption over a rate reduction in the near future.

On Tuesday, the Australian Bureau of Statistics stated that retail sales increase 0.2 percent in May, compared to anticipations for a 0.3 percent increase. Retail sales edged up 0.1 percent in April, whose amount was reviewed from a prior estimated 0.2 percent upsurge.

A separate report presented that Australia’s trade deficit extended to A$2.218 billion in May from A$1.785 billion in April, whose amount was reviewed from a previously projected deficit of A$1.579 billion.

Analysts had anticipated the trade deficit to narrow to A$1.500 billion in May.

NZD/USD  dropped 0.40 percent to trade at 0.7198, off Monday’s one and a half week high of 0.7240.

In New Zealand, data earlier presented that the NZIER business confidence index increase to 19 in the 2nd quarter from a reading of 2 in the three months to March.

Temporarily, investors stayed careful as Britain’s surprise choice to exit the EU, generated doubt over the significances of the U.K. vote on the country’s economy and the global economy all together.


The U.S. dollar index, that  gauge the greenback’s strong point compared to a trade-weighted basket of six major currencies, increased 0.13 percent at 95.72.

Pounds Declines

On Tuesday, the pound returns 31-year lows compared to the U.S. dollar, following the announcement of downbeat U.K. service sector statistics added to worries over the effects of the Brexit poll on the British economy.

GBP/USD hit 1.3148 throughout European morning trade, the pair’s bottom since June 27,  the pair then consolidated at - retreating -percent.

Cable was expected to find support at 1.3118, the low of June 27 and a 31-year low and resistance at 1.3339, Monday’s peak.

Research group Markit stated its U.K. services,  purchasing managers’ index declined to 52.3 the previous month from a reading of 53.5 in May. Analysts had anticipated the index to increase to 52.5 in June.

In spite of the fact that the service sector sustained to expand, Markit pointed out that the development over the 2nd quarter all together was the slowest since the 1st quarter of 2013.

Markit also noted that 89 percent of the surveys were submitted prior the Brexit vote.

On Monday, Nigel Farage, a leading proponent of the Brexit campaign, quit as leader of the U.K. Independence Party (UKIP) saying he'd "done his bit."

Market members were looking forward to the Bank of England’s financial stability report scheduled later Tuesday for fresh clearness on the health of the U.K. banking sector in the wake of the Brexit poll.

Sterling was suddenly lower compared to the euro, with EUR/GBP increase 1.08 percent at a 21-month peak of 0.8482.

Earlier Tuesday, Markit stated its German service PMI increase to 53.7 in June from 53.2 in May, against anticipations for an unmoved reading.


For the whole euro zone, the Markit services, purchasing managers’ index (PMI) increase to 52.8 the previous month from 52.4 in May, also confounding anticipations for an unaffected reading.

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