AUDUSD has appreciated this morning following the release of the Reserve Bank of Australia's, Monetary Policy Meeting Minutes. According to the discussions to be found in the minutes, the RBA considered holding interest rates at 2%.
On the other side of the globe in Europe, this morning first significant news to be released will come from the UK, Office of National Statistics. The ONS at 9.30 am London, will release the latest CPI inflation data. The markets are expecting that the CPI data will remain unchanged at 0.5%.
Across the Atlantic, Statistics Canada will publish Manufacturing Sales data. The number investors are watching for is a decline of -0.7%.
It is a busy afternoon for investors due to a significant amount of US data that is being released at 1:30 London. From the housing sector, there will be news on US Building Permits and Housing Starts. On the inflation front, the Bureau of Labor Statistics will publish CPI and Core CPI data.
The day is rounded off in New Zealand with the GDT Price Index and PPI Input data to be announced.
GBPUSD is trading in a well established monthly downtrend. The move lower for the Pound against the Greenback is due to the perceived weakness in the UK economy combined with the divergence of interest rate policy which has seen the US Federal Reserve take a much more hawkish stance when compared to its British counterpart, the Bank of England.
The morning has started with mildly positive news on the UK housing front with Rightmove publishing its latest data. According to the latest House Price Index, UK prices have risen by 0.4% during the prior month. This increase is markedly less than the 1.3% increase that was reported in April.
Onto this morning and it should be a quiet day in Europe due to the observance of the Whit Monday holiday.
The only significant data release will come this afternoon when the Federal Reserve Bank of New York publishes the Empire State Manufacturing Index. The prior month's release was 9.6 and the market is expecting a decline to 7.2.
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By James – 23 July 2014