- Japanese M2 money stock up by 3.1% vs. 3.2% forecast
- Australia Westpac consumer sentiment up by 1.9%
- Chinese annual CPI down from 2.5% to 2.3%
- Chinese PPI down by 1.1% y/y as expected
- U.K. Halifax HPI to renew rate hike talks?
It appears that most traders were too busy either cheering for Germany or feeling sorry for Brazil in the latest FIFA World Cup semi-final match that most forex pairs stayed stuck in their ranges. The lack of major reports in today’s Asian trading session also explains the lack of large price moves among major pairs, as EUR/USD bounced back and forth between 1.3607 to 1.3620 and USD/CHF moved sideways in a 10-pip range.
AUD/USD saw a little more action, as Australia’s Westpac consumer sentiment showed a 1.9% improvement and boosted the pair to a high of .9415. AUD/JPY, on the other hand, barely budged as it cruised within the 20-pip range from 95.4o to .94.60 that has been holding for the past four trading days.
Chinese CPI came in weaker than expected at 2.3%, down from the previous 2.5% reading and weaker compared to the estimated 2.4% figure. Producer prices marked a 1.1% decline as expected, not as bad as the previous 1.4% annual decline.
In the next few hours, the pound might take the spotlight as the U.K. is set to release its Halifax HPI. Recall that rising house prices have been one of the main reasons why the BOE is considering hiking interest rates before the end of the year and, if this report shows a strong gain, rate hike expectations could drive the pound higher against most of its forex counterparts. However, analysts are expecting to see a 0.3% decline in U.K. home prices for June, coming off a remarkable 3.9% gain in the previous month.
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
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