- Nikkei up by 0.20% for the day
- U.K. BRC retail sales monitor down by 0.3% y/y
- Australia NAB business confidence index improved from 8 to 11
- Australia’s quarterly HPI up by 1.8% vs. 1.1% estimate
- Japanese revised industrial production figure down by 3.4%
- New Zealand residential house prices down by 0.7% in July
- German ZEW economic sentiment to fall from 27.1 to 18.2?
There ain’t no stoppin’ the Greenback! The U.S. currency continued to advance against most of its forex counterparts in the past few hours, taking USD/JPY to a high of 102.37 and EUR/USD to a low of 1.3363. GBP/USD also chalked up losses, as the U.K. BRC retail sales monitor showed a 0.3% annualized decline, following the previous 0.8% drop.
Over in Australia, data was stronger than expected, as business sentiment and house prices showed gains. The July NAB business confidence improved from 8 to 11, its four-year high, while the quarterly HPI chalked up a 1.8% gain versus the estimated 1.1% increase. AUD/USD popped to a high of .9269 after the release while AUD/JPY managed to stay above the 94.50 level.
In Japan, the industrial production reading for June was downgraded from -3.3% to -3.4%, reflecting a larger monthly decline than initially reported. Despite that, the Nikkei managed to follow through with yesterday’s strong performance as it chalked up a 0.20% gain for today.
The Kiwi suffered a wave of selling towards the middle of the Asian trading session when the New Zealand residential house price report showed a 0.7% decline for July, indicating that the RBNZ’s tightening efforts are starting to kick in. NZD/USD broke down from consolidation around .8450 and dipped to a low of .8409 after the release.
The euro could take center stage in the next few hours, as Germany gears up to release its ZEW economic sentiment reading for August. The index is slated to drop from 27.1 to 18.2, reflecting weaker confidence in the euro zone’s largest economy. Overall, the euro zone ZEW figure is expected to dip from 48.1 to 41.3. Watch out for weaker than expected results that might lead to a sharper euro selloff!
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