- Australia’s NAB business confidence index climbed from 10 to 8 in June
- U.K. CPI and BOE Inflation Report Hearings lined up
- German ZEW economic sentiment index to fall from 31.5 to 30.6?
The Aussie managed to take a break from its recent forex selloff, thanks to an improvement in business confidence for June. The NAB index climbed to 10 during the month while the May figure was upgraded from 7 to 8, reflecting brighter prospects for businesses in the country.
AUD/USD is up 23 pips (+0.31%) from a session low of .7385 while AUD/JPY logged in a 31-pip gain (+0.34%) to 91.70. The Australian currency also advanced against European counterparts, with EUR/AUD down by 29 pips (-0.2%) and GBP/AUD retreating by 47 pips (-0.23%).
There were no other top-tier economic reports released during today’s Asian trading hours, keeping risk sentiment in play. Unlike rapper 50 Cent that filed for bankruptcy, Greece’s financial situation might be in for brighter days now that its creditors signed, sealed, and delivered a new bailout deal. Its political situation, on the other hand, ain’t looking too good. Word through the forex grapevine is that the country still missed its 456 million EUR payment to the IMF this week even with the fresh set of funds. What’s that about?!
Aside from continuing updates on the never-ending Greek debt drama, inflation data from the U.K. could also take center stage in today’s London trading session. The headline CPI is expected to show another flat reading in June after posting a 0.1% uptick in the previous month while the core CPI could hold steady at 0.9%. BOE Inflation Report hearings are also scheduled today and this event should provide more insight on the central bank’s outlook for price levels and potential monetary policy adjustments.
Also lined up today are the ZEW economic sentiment readings from Germany and the euro zone. The German ZEW index is slated to dip from 31.5 to 30.6 this month while the region’s figure could fall from 53.7 to 51.1, reflecting a drop in optimism possibly due to the potential impact of Greece’s debt troubles on the rest of the euro zone.
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