Greenback Weakness Continues Amid BoJ Intervention and US-Iran Hopes

The US dollar remains stuck near six-week lows due to last week's Bank of Japan intervention and improving risk sentiment on hopes for a US-Iran deal. This has led to weakness in the greenback, with USD/JPY down over 4% from its highs.

Australia's services sector picked up pace in July, with the S&P Global Services PMI rising to 53.6 and extending growth for a second month. The AUD remains about 3% below its 6 May high of 0.7278, but is showing resilience elsewhere, reaching one-week highs against the GBP and one-month highs against CNH.

New Zealand's unemployment rate rose to 5.6% in Q2, its highest level in the current cycle. However, the Reserve Bank of New Zealand is expected to prioritize price stability, with inflation still above target. The RBNZ is anticipated to increase the Official Cash Rate by 25bp in September and another 25bp hike, taking the rate to 3% by December.