Forex Today: USD sold on Trumpcare rejection, RBA boosts Aussie; UK CPI, ZEW eyed

Dhwani Mehta FXStreet

Forex today witnessed a volatile session in Asia this Tuesday, as broad based US dollar selling prevailed following Trump’s Healthcare bill rejection by the U Senate yet again. As a result, most majors staged a solid rebound, with the Aussie rallying hard on hawkish RBA minutes, while its OZ neighbor – NZD, reversed entire NZ CPI-led slide.

The Yen also regained footing after the Trumpcare debacle triggered fresh concerns over Trump’s ability to deliver on his reforms plans, which weighed down on the market sentiment and boosted the safe-haven flows in the Yen.

Main topics in Asia

New Zealand Consumer Price Index (QoQ) came in at 0%, below expectations (0.2%) in 2Q

BOJ officials concerned about ETF buying – Bloomberg

News is crossing the wires via Bloomberg that some officials at the Bank of Japan (BOJ) are worried about the sustainability of the BOJ’s purchases of exchange-traded funds.

Senate Republicans reject Trump's health care bill

The Huffington Post reports that Trump's care bill has been rejected yet again by Republicans.

Earthquake hits off Russia, Tsunami warning issued

The US Pacific Tsunami Warning Center reported earlier today that an earthquake of 7.4 quake strikes off Russia's Kamchatka, which could cause Tsunami waves within 300 km (186 miles).

RBA minutes: Neutral nominal rate stands at 3.5%

The minutes of the July RBA meeting when interest rates were held unchanged at 1.5% have been released, highlighting that the Central Bank now estimates neutral real rate had fallen to around 1%, while neutral nominal rate stands at 3.5%.

Key Focus ahead

The European session today remains quite eventful, with the critical UK CPI data due to be published at 0830GMT, followed by the German ZEW surveys. Meanwhile, the US import prices data, BOE Carney’s speech and NZ GDT price index data will garner a lot of attention in the NA session.

GBP/USD: Bulls eye 1.3115 on Trumpcare failure, UK CPI - Key

The offered tone behind the greenback strengthened sharply in the Asian trades, sending the GBP/USD pair northwards, in a bid to regain 1.31 handle ahead of the UK CPI release.

EUR/USD - 1.15 conquered on Trump’s health care debacle, is rally overdone?

The EUR/USD rose to 1.1538 in Asia; its highest level since May 2016 after the news of Trump’s health care debacle triggered concerns about the President’s ability to deliver tax reforms, thus leading to a broad based sell-off in the US dollar.

UK: Key data ahead - Wells Fargo

During the week, two key economic reports are due in the United Kingdom: inflation and retail sales. Analysts from Wells Fargo, point out that the culprit behind the slowdown in consumer spending appears to be higher inflation.

The key US data for this week - UOB

Analysts at UOB note that this week’s US economic docket is relatively light with the data releases that are focused on manufacturing and will also encompass housing sectors.

GMT	Event	Consensus	Previous
Tuesday, Jul 18
08:30	GBP Retail Price Index (MoM)	0.3%	0.4%
08:30	GBP Retail Price Index (YoY)	3.7%	3.7%
08:30	GBP DCLG House Price Index (YoY)	3.2%	5.6%
08:30	GBP Producer Price Index - Output (MoM) n.s.a	0.0%	0.1%
08:30	GBP PPI Core Output (MoM) n.s.a	0.1%	0.1%
08:30	GBP Producer Price Index - Output (YoY) n.s.a	3.3%	3.6%
08:30	GBP PPI Core Output (YoY) n.s.a	2.8%	2.8%
08:30	GBP Producer Price Index - Input (YoY) n.s.a	8.7%	11.6%
08:30	GBP Producer Price Index - Input (MoM) n.s.a	-1.0%	-1.3%
08:30	GBP Core Consumer Price Index (YoY)	2.6%	2.6%
08:30	GBP Consumer Price Index (YoY)	2.9%	2.9%
08:30	GBP Consumer Price Index (MoM)	0.2%	0.3%
09:00	EUR ZEW Survey - Current Situation	88	88
09:00	EUR ZEW Survey - Economic Sentiment	18.0	18.6
09:00	EUR ZEW Survey - Economic Sentiment	37.2	37.7
12:30	USD Export Price Index (YoY)		1.4%
12:30	USD Export Price Index (MoM)	0.0%	-0.7%
12:30	USD Import Price Index (YoY)		2.1%
12:30	USD Import Price Index (MoM)	-0.2%	-0.3%
12:55	USD Redbook index (MoM)		-1.1%
12:55	USD Redbook index (YoY)		2.4%
13:30	GBP BOE's Governor Carney speech
14:00	USD NAHB Housing Market Index	67	67
15:30	USD 52-Week Bill auction		1.215%
15:30	USD 4-Week Bill Auction		0.95%

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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