The Australian dollar remains soft after RBA left the cash rate unchanged at historical low of 2.00% as widely expected. The accompanying statement contained little new information. The central bank maintained a neutral stance and said that it will assess the outlook and policy stance based on further information on economic and financial conditions ahead. It maintained that the economy will be "operating with a degree of spare capacity for some time yet". Inflation is expected to be consistent with target "over the next one to two years" even with a lower exchange rate. And regarding the exchange rate, RBA maintained that "further depreciation seems both likely and necessary"
In Eurozone, German chancellor Angela Merkel and French president Francois Hollande met yesterday in Paris on the issue of Greece after the referendum. However, it's reported that there was no unified stance regarding the way forward with Greece. It's believed that France if pushing to extend the maturities on Greek debt and cut interest rate on them while keeping the face value unchanged. But Merkel is facing domestic political obstacles to give Greece more concessions. ECB held the limit on Emergency Liquidity Assistance for Greece unchanged. But the central bank announced to "adjust the haircuts on collateral accepted by the Bank of Greece for ELA." Some analysts warned that ECB might shut down the ELA by July 20.
Looking ahead, Greece is expected to present a fresh bailout proposal at an emergency summit in Brussels today. On the data front, Swiss will release unemployment rate and foreign currency reserves. UK and Germany will release industrial production. US and Canada will release trade balance.