United States Dollar:
The US dollar strengthened yesterday, after U.S. durable goods data jumped in July. Demand for these goods rose by 22.6% from the previous month, and was the biggest rise on record. An increase in commercial aircraft demand was one of the biggest contributors. U.S. CB Consumer Confidence data was also positive, and the index rose from 90.3 in July to 92.4 in August. GBP/USD fell to a low of 1.6538 overnight on the news, remaining on the back foot throughout most of the Asian session. The pair has bounced back a little this morning to open at 1.6565. U.S. Preliminary GDP, Unemployment Claims and Pending Home Sales are all due for release tomorrow, and up until this point the range in cable is likely to be fairly flat.
Euro:
EUR/USD fell to a low of 1.3153 overnight, again in response to the stronger-than-expected U.S. economic data released yesterday afternoon. There was good protection down at 1.3150, and the pair has since bounced back to open in Europe at 1.3185. This mild bounce has also been supported in part by news that the Russian and Ukrainian presidents have sat down for talks. Although there was no vow to stop fighting in the region, the Ukrainian leader Poroshenko said that a roadmap for peace would be prepared. The euro has also fallen a little versus the pound, and GBP/EUR trades this morning at 1.2565.
Aussie and Kiwi Dollars:
NZD/USD has been the standout performer overnight. This was in reaction to news that Fonterra, New Zealand’s biggest exporter and the world’s largest dairy exporter, said that it planned to buy a 20% stake in a Chinese children’s food manufacturer to help meet growing demand for infant formula in the country. The company also announced that it would be expanding its milk powder operations in NZ. NZD/USD pushed up from .8317 and opens this morning at .8375. AUD/USD has also ticked higher, up from .9297 overnight – it trades this morning at .9335. This has come despite the release of weaker-than-expected local construction data overnight.
Date Releases for the next 24 hours:
AUD: HIA New Home Sales m/m, Private Capital Expenditure q/q
EUR: No data
GBP: No data
NZD: No data
USD: Crude Oil Inventories
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