Forex: AUD/USD – Aussie retaking lost ground

Written by: Violina Todorova
July 25, 2013

_iNVEZZ.com Thursday July 25th:_ The Aussie has firmed today against the US dollar, rising to a current intraday high at 0.9169 ahead of the European opening and notwithstanding increased demand for the greenback. Currently in European trading the AUD/USD is hovering around 0.9152, close to its high for the day so far.

The US dollar was yesterday supported by positive US home sales data for June, which showed that new home sales jumped 8.3 percent to a seasonally adjusted annual rate of 497,000 units, a five-year high and well up on May’s reading of 459,000.
The pair started its downward trajectory early in the Asian session yesterday, after announcement of Australia’s inflation rate in the second quarter, with the downtick continuing throughout the day to a six-day low at 0.9127 late in American trading.

The CPI came out at 2.4 percent y/y, below the expected and prior 2.5 percent. The trimmed mean figure for Q2 y/y came out at 2.2 percent, in line with forecasts and the prior quarter.
The quarter-on-quarter rate remained unchanged at 0.4 percent, below expectations for 0.5 percent. And the RBA’s ‘quarterly trimmed mean’ CPI, which excludes most volatile items, increased to 0.5 percent in Q2, matching forecasts and up on 0.3 percent in the previous quarter.
The preliminary reading of China’s HSBC Manufacturing Purchasing Managers Index for July came out today at 47.7, an 11-month low and down on June’s 48.2. Analysts had been expecting the index to rise to 48.6.

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