Forex

Negative US fundamentals reinforced the weakened outlook for the future growth

By Forex-Metal

Asian and European trading sessions:

Australian Dollar: Tuesday saw unexpectedly negative publication of the Australian statistics. Monthly Building approvals in June were expected to rise for 2.0%, but the indicator dropped for 3.3%. The retail sales were predicted to increase for 0.4%. but its volume grew only for 0.2%.

The Australian dollar dropped against the US dollar after the released decision of the Reserve Bank of Australia to leave the principal rate unchanged at the level of 4.50%. The supporting statement of the RBA confirmed that the Australian labor market continued to stabilize and that the Australian monetary policy was considered to be correct. 

Euro: The EUR/USD pair traded above the $1.3261 mark on the back of US dollar weakness.

US Dollar: The greenback weakened as a result of the slow-down of the US economy rehabilitation. Speculations regarding the fact, that the FRS might introduce additional stimulating measures pressured the US dollar.
Many US relevant fundamentals were expected to be released during the day, and most of them had negative forecasts and are expected to reinforce a weakened outlook for future growth.

British Pound: The GBP/USD pair continued its sharp rally and set 6-months maximums at the level of $1.5967 .

Japanese Yen: The yen rate grew, as the demand for the save-heaven currencies increased. As a result, the USD/JPY dropped to Y85,90.

Oil: The oil continued its yesterday’s rally into the Tuesday morning trading. The released on Monday positive fundamentals supported the economic rehabilitation expectations and raised the oil prices upwards. The morning trading was set at the range of $81.50 per barrel.

American trading session:

US Dollar: The released US statistics reinforced the negative investors’ outlook. The ABC Consumer confidence dropped for 50 against the expected decreased for 46. Monthly pending home sales dropped for 2.6% in June against the forecasted growth for 4.0%. Factory orders decreased below the expectations in June as well as the reduced personal consumption, personal income and personal spending indicators.