The US dollar was traded upwards on Monday having continued its Friday corrective growth amid a poor news background in anticipation of the release of various US macrostatistics data planned for this week which can support the expectations concerning Fed incentive measures reduce. In particular, US retail sales data will be published on Tuesday.
On Monday there were almost no significant statistics data except Japanese Preliminary GDP for the second quarter. According to the preliminary estimate Japanese GDP for the second quarter rose only by 0.6% while a growth by 0.9% was expected. Prelim GDP Annualized accounted for 2.6% (Consensus growth by 3.6%) Vs 3.8% in the first quarter.
Prelim Nominal GDP has risen by 0.7% at a quarterly rate which turned out lower than forecasted growth by +1.0%. Consumer Spending increased by 0.8%, which exceeded the expectations but Business Spending decreased by 0.1% against the expected growth by 0.6%. However economic growth of Japan for the first six months has been the best for the past three years.
Japanese revised Industrial Production for June decreased by 3.1% at a monthly rate, which coincided with the expectations. At an annual rate Industrial Production in June dropped by 4.6%. At the same time Domestic Corporate Goods Price Index (DCGPI) (analogue of the PPI) grew by 0.5% m/m in July, which exceeded forecasted growth by 0.2%.
The euro continued its correction downwards and tested the level of 1.33 Vs dollar. Preliminary GDP of Greece for the second quarter showed economic growth rate decrease by 4.6% at an annual rate although turned out better than forecasted -4.8%. Meanwhile former ECB president Jean-Claude Trichet declared on Monday that Europe had made progress and the risk of the euro-zone collapse had probably disappeared but the reforms must be continued further.
The Australian dollar reached 2-week high on Monday’s Assian session but then slightly dropped after the dollar’s growth. Some support at the beginning of the day was provided by good Chinese economy statistics published last week which dispelled the fears concerning Chinese economic growth slowdown. New Zealand dollar was also traded downwards. According to Real Estate Institute of New Zealand (REINZ) report housing prices fell in July for the first time for the past 6 months. REINZ Housing Price Index dropped by 0.5% compared with June.Publication source