Article Highlights

  • Australian private capital expenditure down by 4.0% in Q2
  • Nikkei closed 1.08% higher for the day
  • German import prices showed 0.7% decline in July
  • U.K. Nationwide HPI up by 0.3% in August
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It looks like risk appetite is slowly making its way back in the forex market, with major currencies gaining a bit of ground against the U.S. dollar and the Japanese yen. The Nikkei even managed to score a 1.08% lead for the day, putting some green back on the Asian equity markets’ board.

EUR/USD bounced back up to the 1.1350 handle (+0.32%), GBP/USD recovered to 1.5500 (+0.10%), and USD/CHF down by 16 pips (-0.17%).

Commodity currencies are still looking a tad weaker, with the Aussie hurting from the worse than expected 4.0% drop in private capital expenditure for Q2. Analysts had already been bracing to see a 2.5% decline but were also disappointed to find out that the previous period’s reading was downgraded to show a larger 4.7% decline.

AUD/USD is down 25 pips to the .7100 handle (-0.37%), AUD/JPY is lower by 51 pips to 85.15 (-0.60%), AUD/CAD is down 42 pips (-0.45%), and AUD/NZD is down 30 pips (-0.28%).

Early London session releases showed a 0.7% decline in German import prices for July and a 0.3% increase in the U.K. Nationwide HPI for August. No other major reports are lined up for the next few hours, which suggests that European currencies could take their cues from market sentiment and equity performances. Stay on your toes!

See also:

U.S. Session Recap

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