- U.S. advanced GDP weaker than expected at 3.2% vs. 3.3% estimate
- U.S. initial jobless claims up by 348K instead of estimated 331K figure
- U.S. pending home sales disappoint with 8.7% decline
- Japanese national core CPI up by 1.3% vs. 1.2% consensus
- Tokyo core CPI up by 0.7% as expected
- Australian quarterly PPI at 0.2%, lower than expected
A fresh wave of economic data sparked volatility among major pairs in the latest U.S. session, as weaker than expected reports from the U.S. economy resulted to a dollar selloff. Advanced GDP was weaker than expected at 3.2% versus the 3.3% growth estimate while initial jobless claims showed a larger increase of 348K compared to the projected 331K figure. Pending home sales turned out to be a huge disappointment, as the report showed a 8.7% decline instead of the estimated 0.7% dip.
A few minutes ago, Japan released its share of economic reports which came in mixed. The national core CPI showed a 1.3% jump, higher than the expected 1.2% increase, while the Tokyo core CPI came in line with the consensus of a 0.7% rise. Household spending was weaker than expected at 0.7% but the jobless rate showed a large improvement from 4.0% to 3.7%. Preliminary industrial production also missed expectations of a 1.3% increase and came in at 1.1%.
Also freshly released is the Australian quarterly PPI figure, which came in weaker than expected at 0.7% versus the estimated 0.2% uptick. This suggests that consumer price inflation might be weaker in the near term, which could keep the Aussie’s gains at bay.
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