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Any recovery for the AUD?

ICM Capital

The euro continued to decline against the US dollar for the fourth consecutive day with the absence of major economic data from the European side to support the Euro. On the other hand, Housing Starts for the month of July showed that the US added 1.206 million housing units, contrary to expectations of a 1.19 million units increase. This figure is considered important, since it tracks the number of new single-family homes or buildings constructed.
European Economic Data:
Time GMT Event Vol Forecast Previous
08:00 Current Account (Jun) 2 star 19.2 B 18.0 B
09:00 Construction Output (Jun) 1 star 0.3%
09:00 Construction Output (yearly) 1 star 0.3%
American Economic Data
Time GMT Event Vol Forecast Previous
11:00 MBA Mortgage Applications (Aug) 1 star 0.1%
13:30 Consumer Price Index Core (Jul) 1 star
13:30 Consumer Price Index (Jul) 2 star 0.1% 0.3%
13:30 Consumer Price Index n.s.a (Jul) 1 star
13:30 Consumer Price Index ex food & energy (Jul) 2 star 0.2% 0.2%
13:30 Consumer Price Index ex food & energy (yearly) 3 star 1.9% 1.8%
13:30 Consumer Price Index (yearly) 3 star 0.2% 0.1%
14:00 EIA Crude Oil Stocks Change 1 star -1.682m
18.00 FOMC minutes 3 star

The pound traded higher against the US dollar on Tuesday, reaching its highest level since the beginning of last July, after several positive economic data released from the British economy. The Core Consumer Price Index, which is considered the key indicator to measure the levels of inflation, rose by annual reading to 1.2%. The pound was also supported by the PPI which rose to 0.1%.
British Economic Data
No economic data

The Japanese Yen was stable on Tuesday against the US dollar with the absence of the Japanese economic data. The yen is still affected by the recent data, which showed that the third largest economy in the world is in recession, after it had recorded a growth during the previous two quarters. This will pave the way again for the possibility of expanding the stimulus measures by the Bank of Japan to support the economic recovery and a quick exit from the recession.
Japanese Economic Data
Time GMT Event Vol Forecast Previous
04:30 All Industry Activity (Jun) 2 star 0.4% -0.5%
05:00 Coincident Index (Jun) 2 star 112
05:00 Leading Economic (Jun) 2 star 107.2
23:50 Foreign Bond Investment 2 star 124.4 B

The Australian dollar fell against the US dollar after the disclosure of the RBA Meeting Minutes. The members of the central bank of Australia expect further decline in the Australian dollar levels to boost the economy's performance by giving a competitive advantage for Australian exports. The minutes also pointed to the continuing recruitment process as well as moderating profit of the non-mining economic sectors, with the general improvement in the conditions of the Australian labor sector. The meeting minutes also mentioned the risks entailed in the slowdown in the growth of the Chinese economy, Australia’s largest trading partner.
Australian Economic Data
Time GMT Event Vol Forecast Previous
00:30 Westpac Leading Index (Jul) 1 star 0%

Gold prices closed on Tuesday at the same price it opened at, $ 1117 per ounce. Gold prices rose during the morning session to reach $ 1120 per ounce, but fell back to $1109 per ounce during the US session, after the release of New Home Construction Index before ending the day at its opening price, as investors await today’s FOMC Meeting Minutes.

Crude oil prices continued to fall, reflecting the negative pressure on crude oil prices and as the dollar found enough support for it to rise yesterday after the release of positive US housing data, ahead of the release of the FOMC meeting minutes later today.

All market information provided in the ICM Capital Daily Market Outlook is based on several independent sources believed to be reliable and are written in good faith. This information does not represent personalised investment advice nor a solicitation for the trading of any investment or any trades. The prices and news mentioned in this outlook are absolutely no guarantee of future market performance. There are risks associated with any investment and we strongly encourage readers to supplement the information in this Market report with independent research and other professional advice before making any investment decisions.

Source: https://www.icmcapital.co.uk/
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