The US dollar weakened on the last trading day for July. The month end buying saw the greenback post fresh lows which sent its peers such as the EURUSD to a new two and half year highs.
Economic data from the Eurozone yesterday saw the flash inflation estimates for July remaining stable. Headline inflation remained steady at 1.3%, but core inflation rose to 1.2% from 1.1% previously. The unemployment rate fell to 9.1% in June. This was better than 9.2% revised estimates post for the month of May. The overall positive data helped to push the common currency higher.
Looking ahead, economic data today will be busy, starting with the US ISM manufacturing PMI. Economists polled expect to see the manufacturing index slip to 56.4 after the index rose to 57.8 in June. New Zealand will be releasing the quarterly unemployment data as well. Expectations call for the NZ unemployment rate to fall to 4.8% on the quarter.
