Overnight, the main event was the RBA rate decision. The central bank left the key rate unchanged at 2.00 % and said that accommodative monetary policy will remain appropriate in the near-term. They think that AUD will further depreciate, noting that while the currency has declined noticeably against the US Dollar, it hasn’t much against a basket of currencies. Overall, nothing new from the RBA.
Chinese stock markets had again a volatile session. The government is trying to calm the markets down, but it is unlikely to succeed as traders and investors seem to be in a panic mode. Meanwhile, Greece remains the hot topic in the currency markets. While the reaction to the referendum has been surprisingly calm, traders continue to watch the developments there as a Grexit seems increasingly likely. There is a Eurogroup meeting scheduled this morning, as well as a Euro Summit in the evening. In terms of data releases, the key events will be UK industrial & manufacturing data at 0930 BST and Canadian trade data at 1330 BST.
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