ASIAN session review: Yen retreats

Data released (actual, consensus, previous):  

01:30 GMT Australia Building Permits (MoM) (Jun)  -6.9%    2.3%    -4.3%    

01:30 GMT Australia Building Permits (YoY) (Jun)  -13.0%   _     -2.2%    

03:05 GMT Australia RBA's Governor Glenn Stevens Speech                       

06:00 GMT Germany Gfk Consumer Confidence Survey (Aug)  7.0    6.9    6.8   

09:00 GMT EMU Consumer Confidence (Jul) -17.4    -17.4    -18.8        

09:00 GMT EMU Business Climate (Jul)  -0.53    -0.55    -0.67       

09:00 GMT EMU Economic Sentiment Indicator (Jul)  92.5    92.6    91.3        

09:00 GMT EMU Services Sentiment (Jul) -7.8    -9.0    -9.5        

09:00 GMT EMU Industrial Confidence (Jul)  -10.6  -10.3    -11.2

 

The yen weakened for the first time in four days versus the dollar after Japan’s industrial production slid by the most in two years.

 

Australia’s dollar slumped after Reserve Bank Governor Glenn Stevens said the inflation outlook provided room for lower interest rates if required.

 

The U.S. Dollar Index rose for a second day before the Federal Open Market Committee starts a two-day meeting today.

 

EURO:

The measure of consumer confidence in Germany in terms of the Gfk Survey up ticked to 7.0 for the month of August, slightly above expectations at 6.9.

 

EUR/USD consolidates under $1.3300, with closest support coming  at $1.3255 (high Jun 21).  Below $1.3160 initial support is around $1.3140 and  $1.3070/60 (Jul 18 lows). Above $1.3300 (Jun 6 high) gains will extend to and $1.3325.

 

POUND:

The pound has eased Tuesday.

 

GBP/USD off session lows on $1.5314 with initial resistance remains at $1.5416 (Jul 29 high).  Initial support remains at session lows, then - at $1.5180 (Tuesday’s lows) with a break lower widens losses to $1.5150 (Jul 18 lows) and $1.5080 (Jul 17 lows). Above  $1.5416 resistance is near $1.5480 (Jun 25 highs).

 

YEN:

The yen weakened Tuesday. Official data released earlier Tuesday showed Japan’s industrial production unexpectedly fell a seasonally adjusted 3.3% in June from the level in May. Japanese household spending also declined, though the monthly unemployment rate eased to 3.9% from 4.1%.

 

USD/JPY remains above Y97.65/50 (50% Fibo from Y93.80 - Y101.50, also the lower bound of the channel from Jul 7 and session lows). If break under support comes at Y96.75 (61.8%). Initial resistance is near session highs at Y98.50, above - at Y98.80/90 (ex-support). Further resistance is around Y100.47 (Thursday’s high).

 

DATA AHEAD:

EMU Jul Business Climate is due to come at 09:00 GMT. The same time EMU releases Jul Consumer Confidence (-17.4 expected vs -18.8), Economic Sentiment Indicator (93.0 expected vs 91.3) and Industrial Confidence (-10.3 vs -11.2).

 

At 12:30 GMT Canada issues Jun Industrial Product Pricem followed by US Jul Consumer Confidence at 14:00 GMT. Analysts expect 81.5 after 81.4.

 

 

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