Global markets were cautious to end the week, following another escalation in the US-China trade spat.
Stocks in the US and Europe gave back some of the previous day’s gains, while the US dollar index traded flat — although it finished 1.3% higher for the week.
The Aussie dollar came under further selling pressure, falling to 0.7441 US cents to cap a weekly decline of 2.2%.
And oil prices dipped sharply amid talking of increased production from Saudi Arabia and Russia. Brent cruded fell by 3.77% to close at $US73.08 a barrel.
Looking ahead, there’s little in the way of headline data releases plus the World Cup is in full swing, which could be the recipe for a quieter week on markets.
Domestically, the RBA will release the minutes from its June meeting on Tuesday.
Then there’s Q1 GDP data from New Zealand and the Bank of England will make its interest rates announcement (both on Thursday).
Tuesday’s RBA minutes will be “worth watching,” according to ANZ’s currency strategists.
The analysts will be looking for further insights after “the RBA expressed some caution both around the international backdrop and the tightening in domestic lending standards” earlier this month.
ANZ also said that if weekly auction clearance rates continue to decline, it could start to weigh on the Aussie dollar.
In Europe to start the week, the ECB is running a panel called “Macroeconomics of Price and Wage Setting,” which will include a speech from ECB President Mario Draghi on Tuesday night.
Thursday’s GDP print in New Zealand will be book-ended by current account data on Wednesday and net migration figures on Friday.
“With the economy having recently fallen into a bit of a hole, some upside surprises are likely needed to stabilise the currency,” ANZ said.
“Should they manifest, AUD/NZD in particular could trade heavily.”
No change is expected to the current settings of 0.5% when the Bank of England makes its rates announcement on Thursday night, with markets instead focused on any changes to the bank’s outlook in its accompanying statement.
And rounding out the week on Friday there’s a wave of preliminary June PMI data for Japan, Europe and the US.
Here’s the full calendar, via ANZ (key events in dark blue):