- Japan’s June industrial production up by 0.8% vs. 0.4% forecast
- Australian building approvals down by 8.6% vs. estimated 0.8% drop
- Australia’s import prices up by 1.4% in Q2 as expected
- German prelim CPI and unemployment change data due
It looks like dollar bulls ain’t done partying! The U.S. currency continued to advance against its forex rivals in today’s Asian session, even after the FOMC statement turned out to be less hawkish than expected. EUR/USD is down 18 pips (-0.17%), GBP/USD is trading below 1.5600 (-0.08%), and USD/JPY is up 20 pips (+0.18%).
In Japan, the preliminary industrial production report for June showed a stronger-than-expected 0.8% gain versus the projected 0.4% uptick. To top it off, the previous reading was revised to show a smaller 2.1% decline compared to the initially reported 2.2% drop. Yen pairs are mostly in the green, with GBP/JPY up by 22 pips (+0.12%), EUR/JPY hovering around 136.00 (-0.04%), and AUD/JPY up by 35 pips (+0.37%).
The plunge in Australian building approvals (-8.6% actual vs. -0.8% forecast) didn’t seem to bother the Aussie too much since forex traders paid closer attention to the quarterly import prices report, which showed a 1.4% increase in Q2 as expected. AUD/USD is up 16 pips (+0.21%), AUD/NZD is up 86 pips (+0.79%), and EUR/AUD is down 60 pips (-0.40%).
Euro pairs could be in for a bit more action in the upcoming London trading session, as Germany and Spain are set to print a bunch of reports. Germany will release its preliminary CPI reading and unemployment change figure, which is expected to show a 5K decline in joblessness. Spain will report its flash CPI reading and flash GDP figure around 8:00 am GMT.
The franc could also show off some moves with the release of the Swiss KOF economic barometer also at 8:00 am GMT. The index is expected to climb from 89.7 to 90.3 this month, reflecting improvements among various economic sectors and possibly giving the franc a boost.
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
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