Heavy economic docket fails to move the Aussie

Australian Dollar:

During a release closely watched by local investors, figures yesterday showed China’s economy grew at a slightly faster than expected pace in April –June from a year earlier, expanding at a rate of 7.5 percent, just ahead of the median forecast of 7.4 percent. With a raft of stimulus measures providing a supportive backdrop for the world’s second largest economy their continues to remain concerns over growth potential moving forward as policy makers grapple with a softer property market and a high debt level across local governments. Drifting from an earlier high of 0.9373 the Australian dollar has lost some ground over the past 24 hours opening marginally weaker this morning at a rate of 0.9364.   

• We expect a range today of 0.9330 – 0.9400

New Zealand Dollar:

The New Zealand dollar was sold off aggressively yesterday morning after traders ditched the higher yielding currency following the release of figures which showed the consumer price index rose by a mere 1.6 percent in the second quarter from a year earlier. Falling short of the expected 1.8 percent read the motivation to sell the currency has been in line with the perceived effect lower inflation will have of the RBNZ and more importantly their interest rate stance. With diary prices also trading at their lowest level since 2012 it has been all way traffic for the Kiwi over the past 24 hours slumping to a low of 0.8688 when valued against its US Counterpart. Opening more than half a cent lower this morning the New Zealand dollar currently buys 87.13 US Cents  

• We expect a range today of 0.8680 – 0.8750

Great British Pound:

In a relatively steady session for the Great British Pound the Sterling managed to hit a 22-month high when valued against the Euro after a report showed UK unemployment slid to its lowest level since 2008. Adding to the signs of an accelerated economic recovery evidence continues to mount that the broader economy will be able to absorb higher interest rates over the near and longer terms. Whilst stronger against the Euro and the Kiwi (1.9661) this morning the Sterling opens lower against the US dollar (1.7135) and the Australian dollar (1.8294).

• We expect a range today of 1.8260 – 1.8330

Majors:

US Stocks advanced overnight in a move big enough to see the Dow Jones Industrial Average hit an all-time high. Still buoyed by comments from Federal Reserve Chair Janet Yellen who told lawmakers overnight on Tuesday that asset valuations in general are still in line with historical norms, the US dollar has sat close to its highest level in more than three weeks when valued against a basket of its major peers. In other happenings overnight US Industrial Production figures missed their mark a number which failed to deter the attractiveness of the dollar. Opening stronger against the Yen this morning at a rate of 101.679 the Euro is also lower against the Greenback as it currently swaps hands at a rate of 1.3523.

Data releases

• AUD: CB Leading Index m/m, NAB Assist Gov Edey Speaks, NAB Quarterly Business Confidence
• NZD: No data today
• JPY: No data today
• GBP: No data today
• EUR: CPI y/y, Core CPI y/y
• USD: Building Permits, Unemployment Claims, Housing Starts, Philly Fed Manufacturing Index