- Australia MI inflation gauge up from 3.0% to 3.1%
- Australia HIA new home sales down by 4.3% in May
- New Zealand ANZ business confidence down from 53.5 to 42.8
- Japanese housing starts down by 15.1% y/y
- German retail sales and euro zone CPI forecasts due
Consolidation’s the name of the game for the major currency pairs! EUR/USD edged slightly higher then moved sideways upon reaching the 1.3650 minor psychological resistance. GBP/USD is still hovering around the 1.7030 levels while USD/JPY took a pause from its recent drop and settled above 101.25. Japan’s housing starts report showed a 15.1% annualized decline verses the estimated 10.1% drop.
Economic data from Australia and New Zealand reflected weaknesses, yet it appears that the Australian dollar has been putting up a good fight as AUD/USD was able to hold on to the .9425 area. NZD/USD, on the other hand, gave up a lot of ground when New Zealand reported a decline in its ANZ business confidence index from 53.5 to 42.8. Australia’s new home sales marked a 4.3% decline in May while its MI inflation gauge showed a small improvement from 3.1% to 3.0%.
Currency crosses saw a little more action, with AUD/NZD jumping up to a high of 1.0768 and AUD/CAD edging closer to parity. EUR/GBP has kept up with its latest climb past the .8000 mark while other euro pairs are starting to edge back down.
Up ahead we have Germany’s retail sales report up for release with analysis expecting to see a 0.8% increase. Also due today is the euro zone’s next set of CPI forecasts, which might see small improvements from the previous releases. Take note though that these have been crucial in helping the ECB decide to cut rates in their previous policy statement, so another round of weak figures might lead to speculations of further easing.
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!