Currency Call Mid-Day Update (19 July 2021)

 #OPINIONLEADER# 

Currency Call Mid-Day Update (19 July 2021)

Gim Hong highlighted the following points:

Bank of Japan (BoJ) held monetary policy unchanged last Friday.

GDP forecast for 2021 was revised downwards from 3.6%-4.4% to 3.5%-4.0% due to COVID implication.

Inflation forecast for 2021 was revised upwards from 0.0-0.2% to 0.3%-0.6% due to rising oil prices.

OPEC meeting resumed over the weekend with an agreement on the raising of production baseline for the UAE, Saudi Arabia, Iraq, Kuwait and Russia.

Oil production from August will be hiked by 400,000 barrels-per-day (bpd).

The current 5.8 million bpd of oil production cut will be phased out by September 2022.

Reserve Bank of Australia’s meeting minutes will be released tomorrow at 0930 (GMT 8).

Details on the central bank’s recent action of tapering may be included in minutes.

Scott highlighted the following points:

U.S. dollar index is currently trading at the top of a range.

With the lack of news, wait for U.S. dollar index to bounce down from the 92.80 level before looking for selling opportunities at 92.70.

Jin highlighted the following point:

Look for selling opportunities of NZD/USD at 0.6994.

Look for selling opportunities of AUD/USD below 0.7376.

During the day, NZD/USD and AUD/USD weakened.

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