Forex Marketz Daily Forex News – Fully Markets Update
The Australian dollar (AUD/USD) was steady this morning after a mixed bag of economic data was released. Local, Australian, investment data and as expected Chinese consumer price index (CPI) crossed the wires this morning.
Australian home loans rose 0.5 percent, month to month, in July. This was notably below the 1.5 percent rise that was expected. This slip cause the housing focused Reserve Bank of Australia a reason to pause for thought. Owner occupied loan value rose up by a tepid 0.3 percent. This was worse than June’s 2.9 percent gain. However, investment lending was up 1.6 percent after a one percent decline the month before.
Economic data, out of China, released at the same time, saw that consumer prices were up 1.4 percent in July. This was just under the 1.5 percent rise expected. Food price inflation was weaker. The bulk of the increase, in the CPI, was accounted for by non-food price rises. Producer prices, announced today, rose by 5.5 percent. This was just below the 5.6 percent that analysts expected.
The Australian dollar trades Quietly
The met expectations Chinese CPI data along with a mixed bag and hard to get a sense of direction read domestic housing numbers saw AUD/USD Forex market essentially unchanged. This Forex market had been under some pressure earlier by weak Australian consumer confidence data. There was also another Reserve Bank of Australia (RBA) talk worrying about the effects of a stronger AUD in the local economy.
RBA Deputy Governor Christopher Kent, said Wednesday, that the financial markets should worry more about stretched household balance sheets than about housing price levels. He also stated that the main worry concerning China was it high level of debt on their books. These comments took some investor focus off the CPI report this morning.
