•
Dollar higher all around as US housing
statistics beat estimates
– Housing
starts & building permits for July rise more than expected; follows Monday’s
strong NAHB sentiment indicator
– Strong
housing sector removes one more obstacle to Fed tightening; USD-positive
•
AUD lower ahead of RBA’s Stevens’ testimony,
up a bit after
– He
reiterates RBA’s view, adds that risk of a material fall in AUD is “underestimated”
– AUD
recovers slightly though as he downplays the usefulness of monetary policy
•
Japan trade deficit wider than expected
– Exports
rise in line with expectations, but imports are much higher than expected
– Continuing
wide trade deficits are one reason I expect JPY to weaken further
•
Today:
– Eurozone: German
PPI for July expected to remain at June’s pace
– UK:
Minutes of the recent BoE MPC meeting. If there are no dissenting votes in
favor of raising rates, GBP could weaken further
– US: Minutes
of recent FOMC meeting. The statement after the meeting was slightly more
hawkish, so the minutes could be too and send USD higher. However they are
likely to be overshadowed by the Jackson Hole symposium that starts tomorrow.
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