- Australian home prices up 4.7% in Q2 vs. 2.5% forecast, 1.6% previous Chinese Aug CB leading index up from 0.9% to 1.0% Japanese traders still out on a holiday U.K. public sector net borrowing and CBI industrial order expectations data due
The lack of top-tier data and the absence of Japanese traders kept most forex pairs in a lazy mood, as market participants are holding out for larger catalysts later on this week. The Aussie got a couple of treats, with the quarterly HPI report indicating a stronger than expected 4.7% jump in house prices for Q2 and the Chinese CB leading index for August printing a 1.0% increase.
AUD/USD is holding steady at .7130 (+0.01%), AUD/JPY is hovering around the 86.00 handle (+0.08%), AUD/NZD is up 10 pips to 1.1284 (+0.10%), and AUD/CAD is up 13 pips to .9450 (+0.13%). However, the Aussie is looking pale compared to its European rivals, with EUR/AUD up by 23 pips (+0.15%) and GBP/AUD up by 29 pips (+0.14%).
Pound pairs could enjoy a bit of forex volatility in the upcoming London trading session, with the U.K. gearing up to print its public sector net borrowing data and the CBI industrial orders expectations index. The borrowing report could show a deficit of 8.7 billion GBP, which means that the government spent more than what it collected for the month of August. Meanwhile, the CBI report could show an improvement from -1 to 0, reflecting a slight increase in order volume for the current month.
As for the euro, the region’s consumer confidence index for this month is due and analysts aren’t expecting to see any changes from the previous -7 reading, which indicates pessimism. A move towards the positive territory could spur forex gains for the euro while a more negative reading could trigger another sharp selloff. Stay on your toes!
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