Article Highlights

  • Australia building approvals down by 5.0% vs. expected 1.0% decline
  • Australia import prices show 3.0% decrease vs. expected 1.4% drop
  • Japanese average cash earnings up by 0.4%
  • Japanese housing starts down by 9.5% vs. expected 11.2% drop
  • Nikkei down by 0.16% for the day
  • German retail sales and unemployment change data due
  • Euro zone CPI estimates to show no change in headline and core figure
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It’s a double-whammy for the Aussie! AUD/USD was unable to recover off its recent lows around .9325 as data from the Land Down Under came in much weaker than expected. Building approvals showed a 5.0% decline instead of the estimated 1.0% drop while import prices plummeted by 3.0% instead of just showing a 1.4% decrease.

In Japan, data came in mixed, with average cash earnings missing expectations of a 0.7% gain by coming in at 0.4% and housing starts showing a 9.5% y/y drop versus the projected 11.2% decline. The Nikkei chalked up a 0.16% decline as risk appetite waned in today’s Asian trading session.

EUR/USD struggled to hold on to the 1.3400 handle, as traders wait for the release of a bunch of important reports from the euro zone today. Germany is set to release its retail sales and unemployment change data while France will report its consumer spending figures for June. Also lined up from the euro zone are the flash estimates for headline and core CPI.

As for the U.K., Nationwide HPI is up for release and might show a 0.6% gain in house prices, weaker compared to the previous 1.0% decline. A lower than expected figure might lead to more pound losses, as traders start to doubt that the pickup in the housing sector will be sustained.

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