The dollar has had a mixed outcome on Tuesday in a relatively tight session, slightly stronger against the Euro and the commodity currencies but still heavy against Sterling, the Chf and the Yen, although it has bounced from its lows there as well. Elsewhere, WTI slipped by 2% after reports that OPEC increased output despite the group’s pact to curb production while Gold briefly hit seven-week highs as traders begin to doubt the ability of the Fed to raise rates in December. The DJI also headed to new record highs, based on the US data, which suggested that the Fed are going to struggle to maintain their hawkish stance. The ISM manufacturing gauge slowed to 56.3 in July, from 57.8 the previous month and compared with expectations of 56.4, while construction spending in July slowed by 1.3%, compared to expectations of +0.3%. US personal income was flat at 0.0% in June, below expectation of 0.4%, while personal spending rose 0.1%, in line with consensus. Earlier in the session, Q2 EU GDP growth accelerated to 0.6% qq, in line with consensus, while the EU PMI manufacturing was revised down by 0.2 to 56.6 in July. Sterling remained firm due to the UK PMI manufacturing climbing to 55.1 in July, up from 54.2, and above expectation of 54.5.
Wednesday will kick off in Asia with the NZ Unemployment (exp; Headline Rate; 4.8%, Change, QQ; +0.7%, PR; 70.7%, Labour Cost Index 1.6%) and the Australian Building Permits, to be followed in Europe by the ECB Non-MP Meeting, the EU PPI., the UK Construction PMI (exp 54) and the Swiss Retail Sales. Ahead of 28 July’s NFP, the US will focus on the ADP Jobs data, along with the EIA weekly crude oil stock change and the ISM NY Business Conditions Index.
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|ASX SPI: 5710|