Article Highlights

  • Australia’s private capital expenditure up by 1.1% q/q
  • Australia HIA new home sales down by 5.7% in July
  • BOJ staff: Weak exports and spending could drag growth down
  • German preliminary CPI and unemployment change due
  • Swiss employment level to climb from 4.17M to 4.21M?
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It’s all about profit-taking, baby! The Greenback gave back some of its recent wins to its major counterparts, as traders booked profits off their long dollar positions ahead of today’s top-tier U.S. releases. EUR/USD climbed back above the 1.3200 handle and went on by as much as 15 pips while GBP/USD retested the 1.6600 major psychological resistance. USD/JPY is sinking lower, with a short-term head and shoulders pattern on its 1-hour chart.

Meanwhile, the Australian dollar got an additional boost from a stronger than expected quarterly private capital expenditure report, which printed a 1.1% gain versus the estimated 0.6% decline. This was enough for the currency to ignore the 5.7% decline in HIA new home sales for July, as AUD/USD spiked to a high of .9370 while AUD/JPY climbed up to 97.22.

Other yen pairs also jumped when reports of BOJ staff cautioning about the potential drag from weak exports and consumer spending hit the airwaves. They noted that demand from China has weakened considerably and that spending might continue to retreat months after the April sales tax hike.

Up ahead, we’ve got the release of Germany’s preliminary CPI and unemployment change data. Price pressures have been weak in the region, which is why Germany could print a flat CPI reading, with a negative figure likely to push the euro lower. As for the jobs data, euro zone’s largest economy could see a smaller decline in joblessness of 6K versus the previous 12K drop in unemployment. Also due today is the Swiss unemployment level, which could climb from 4.17M to 4.21M in the second quarter.

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U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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