- New Zealand July building permits rose 2.0%
- Brazil CB cuts benchmark rate to 7.5% , the stimulus is being offset by a slowdown in the global economy that has hurt exports and battered manufacturers . Sounding very familiar globally .
- Japan July retail sales fell 0.8%y/y, fell 1.5% m/m, large retailers’ sales fell 4.4% . Very weak numbers and all lower than forecast . -MNI
- New Zealand August business confidence index at 19.1, August activity outlook index at 26.4 . Both showing improvement , which just might keep NZD/USD above the 0.8000 level .
- Australia July building approvals fell 17.3%m/m and fell 10.6% y/y . release can be a little on the volatile side so might have any longer term effect.
- Australia 2 qtr private capital expenditure rose 3.4 % , slightly better than forecast. Provided some support to the AUD/USD .
Consolidation seemed to be the name of the game tonight , with the market trading in narrow ranges . Asian stocks remained soft on weak numbers out of Japan and South Korea -bbg and doubts now that the Fed will announce further stimulus soon .
EUR/USD trading now at a high of 1.2540 ( we didn’t have to worry about the sellers above at 1.2580-1.2600) , low was 1.0520 giving us the remarkable trading range of 20 pips. Support now appears below at 1.2480/85 level if you’re very lucky .
USD/JPY almost a 20 pip range though it seemed closer to a fixed rate at 78.65 . Very disappointing sales numbers did little to weaken the Yen .
AUD/USD & NZD/USD both were subjected to Chinese economic weakness ,very cheap iron ore , slowing economies , CB selling, low milk payments, disappointing building approvals , and white shark attacks . But they both found some bids , the AUD/USD around 1.0310/20 and NZD/USD around the 0.8000.The bounces from the lows aren’t very high, so watch out below .
Have a Good Day .
