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Aussie traders shrugged off the RBA’s jawboning and growth forecast adjustments against Australia’s strong retail sales data.

  • AU AIG construction index jumps from 56.0 to 60.5 in July
  • AU ANZ job ads up by 1.5% vs. 2.7% growth in June
  • NZ inflation expectations (q/q) dips from 2.2% to 2.1% in Q3 2017
  • Japan’s leading indicators up from 104.6% to 106.3% vs. 106.2% expected

Major Events/Reports:

Australia’s construction index

Data printed earlier today saw Australia’s construction sector continuing to expand in July.

According to the Australian Industry Group (AIG), the industry clocked in an index reading of 60.5 in July, which is a heck of a lot stronger than June’s 56.0 and marks the highest reading on record since the report began in 2005.

The improvement was broad-based, with new orders, employment, and wage growth improving rapidly during the month. Not only that, but stronger readings were also seen across all four major construction sectors.

Since the economy also saw similar strengths in the manufacturing and services industries, traders took the report as a sign that the Land Down Under is off to a strong start in the second half of the year.

Overall risk appetite on strong NFP release

In case you missed the NFP release, you should know that strong figures pushed the dollar higher across the board.

Well, the optimism carried over to the Asian bourses thanks in part to a lack of fresh catalysts.

Nikkei, which celebrated a weaker yen along with a stronger economy, is up by 0.62% while Hang Seng is up by 0.34% and Australia’s A SX 200 is up by 1.03%. The Shanghai index saw a 0.17% decline, however.

Major Market Mover(s):

AUD

The Aussie saw a one-two punch of overall risk appetite and a stronger-than-expected construction report from Australia.

AUD/USD is up by 25 pips (+0.32%) to .7943, AUD/JPY is up by 24 pips (+0.27%) to 87.93, and AUD/NZD is up by 31 pips (0.29%) to 1.0730.

Watch Out For:

  • 7:00 am GMT: Germany’s industrial production (0.2% expected, 1.2% previous)
  • 8:00 am GMT: Switzerland’s forein currency reserves
  • 8:15 am GMT: Switzerland’s CPI (-0.3% expected, -0.1% previous)
  • 8:30 am GMT: U.K. Halifax house price index (0.3% expected, -1.0% previous)
  • 9:30 am GMT: Euro Zone Sentix investor confidence (27.8 expected, 28.3 previous)