Brexit moves now a memory
The commodity currencies were tossed out with the Brexit result but the market has subsequently had second thoughts.
The New Zealand dollar is leading the way and has essentially erased Brexit decline with five consecutive days of gains. A close above 0.7250 would be the highest in 13 months.
I'm always skeptical of a move on a holiday but it's following the recent trend. In the bigger picture, the idea is that with the Fed likely to stay on the sidelines indefinitely, commodity currencies and other high yielders can outperform and the bubble gets reflated.
In the shorter term, keep an eye on the Australian dollar with the RBA decision due out in the day ahead. I'll have more on that later.
