Here is the key factor to keep in mind today for Australian Dollar trades:
- Australian Private Capital Expenditure: The Australian consumer has drastically cut consumption as evident in the Private Capital Expenditure data for the second-quarter. Economists were looking for a contraction of 2.5%, but the released report showed a contraction of 4.0%. The first-quarter was revised and now shows a much bigger contraction of 4.7%. This combines to a terrible first-half of 2015 for the consumer which is likely to be reflected in GDP data.
Here are the key factors to keep in mind today for US Dollar trades:
- US Second-Quarter GDP: As expected, the second-quarter GDP was revised higher from the originally reported expansion of 2.3% to 3.7%. Economists predicted an increase to 3.2%. The US has changed the way it calculates GDP and opted to leave certain negative figures out of the report while weighing others to a lesser degree. A range of economic reports released show a US economy in contraction while the official GDP figure shows an increase in the expansion. There is a severe disconnect between data and reality. Personal consumption was increase to 3.1% from 2.9% which matched expectations. The GDP PPI was also revised higher by 0.1% and now is at 2.1%. The core personal consumption expenditure index remained unchanged at 1.8%.
- US Initial Jobless Claims & Continuing Claims: Initial jobless claims decreased to 271,000, slightly better than economists’ prediction for a decrease to 274K from the previous level of 277K. On the other side, continuing claims were reported at 2,269K which was much higher than the predicted decrease to 2,248K from the previous week’s upward revised level of 2,256K.
- US Pending Home Sales: The US housing market is weaker than economists hoped for in July. Expectations called for an increase of 1.0% monthly and 8.3% annualized. Forex traders can compare this to the 1.7% contraction monthly and 11.1% increase annualized which was reported in June. The released data showed an increase of 0.5% monthly and 7.2% annualized.
- US Kansas City Federal Manufacturing Activity: The Kansas City Federal Manufacturing Activity report is predicted to show a -4 for August. Forex traders can compare this to the -7 for July.
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