US dollar maintains lows as economic data continue pouring in
The US dollar was in consolidation mode after dropping more than 0.6 percent against a basket of its peers Tuesday. Weaker-than-forecasted job growth has spurred demand for other safe havens, including the yen, as the greenback continues its retreat amid a continual flow of economic data.
The greenback held on to 79.20 against a collection of rivals after housing prices failed to appreciate as much as expected. The Housing Price Index, which provides an estimated value of changes in housing market conditions, grew 0.3 percent in August, well shy of the median estimate calling for 0.8 percent.
In a separate report, the Mortgage Bankers Association said mortgage approvals declined 0.6 percent last week, as the aftermath of the government shutdown threatens the near-term housing recovery. Rising mortgage rates are also a factor, and are keeping some would-be buyers out of the real estate market, according to a recent report from the National Association of Realtors. The US Census Bureau will release data on September new home sales Thursday.
Demand for the yen picked up after a slowdown early in the week, sending the USDJPY 82 pips lower. Japan will make headlines later this week when the country’s Statistics Bureau releases consumer inflation data, which will be used by market participants to gauge the success of record stimulus. The outlook on this pair is slightly bearish, after falling through two of its immediate supports.
Down under, the Australian dollar retraced all of its post-CPI gains as China bank worries intensified. The markets shifted their stance on commodity currencies after Chinese banks said they were preparing for a new wave of defaults. The Aussie fell 95 pips against its American counterpart.
North of the US border, the Canadian loonie declined more than 90 pips against the greenback after the Bank of Canada cut the True North’s growth forecast into 2015.
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