The U.S produced slightly lower than expected growth for the 2nd quarter with Advanced GDP q/q at 2.4%, just below the 2.5% forecast. Growth slowed substantially when compared with the 1st quarter upwardly revised GDP of 3.7%. It seems the uncertainty in the Eurozone weighed on exports and contributed towards the slowed growth in the U.S.
In the typically thin summer trading conditions the currencies struggled to find direction. Only after positive Chicago PMI and Revised UoM Consumer Sentiment were risk takers willing to take the reigns and push the Euro up against the dollar, the single currency is currently up at 1.3060. Meanwhile AUD/USD made it as high as 0.90651, where it found resistance on the 78.6% Fibonacci retracement level (on our chart). USD/JPY continues to get sold as investors remain concerned over the sustainability of the U.S recovery, and have consequently reduced bets of a rate hike in the near-term.
With stocks around the world closing down fo the day, and the U.S currently struggling to reach positive territory it would be no surprise if any highs set by the currencies are sold in to by a market trading under a cloud of risk aversion.
In the typically thin summer trading conditions the currencies struggled to find direction. Only after positive Chicago PMI and Revised UoM Consumer Sentiment were risk takers willing to take the reigns and push the Euro up against the dollar, the single currency is currently up at 1.3060. Meanwhile AUD/USD made it as high as 0.90651, where it found resistance on the 78.6% Fibonacci retracement level (on our chart). USD/JPY continues to get sold as investors remain concerned over the sustainability of the U.S recovery, and have consequently reduced bets of a rate hike in the near-term.
With stocks around the world closing down fo the day, and the U.S currently struggling to reach positive territory it would be no surprise if any highs set by the currencies are sold in to by a market trading under a cloud of risk aversion.
