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Aussie dips despite strong June building data

2017-8-2 12:09:25Basics of Trading
Aussie dips despite strong June building data

The Aussie dipped on Wednesday despite strong building figures for June and as investors await an interest rate review in India ahead.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.03% to 92.94.

Australia reported building approvals for June jumped 10.9%, far outpacing a 1.5% gain seen month-on-month.

The Reserve Bank of India will also unveil its latest interest rate decision with a cut to 6% seen from 6.25% for the benchmark and the reverse repo rate down to 5.80% from 6.00%. ISD/INR traded up 0.10% to 64.120.

AUD/USD eased 0.20% to 0.7953, while USD/JPY changed hands at 110.63, up 0.24%.

Earlier in New Zealand, the employment change on the second quarter fell 0.2%, missing a 0.7% gain seen for an unemployment rate steady at 4.8% as expected. NZD/USD traded at 0.7426, down 0.58% after the data.

Overnight, the dollar traded higher against a basket of global currencies on Tuesday, despite economic data showing the pace of inflation remained lacklustre while manufacturing activity undershot expectations, capping gains in the greenback.

The personal consumption expenditures (PCE) price index, rose 0.1% in June. In the 12 months through June, the so-called core PCE price index increased 1.5% after advancing by the same margin in May.

Fresh on the heels of the inflation data, was a report indicating a slowdown in consumer spending as personal income failed to increase for the first time in seven months, pointing to a moderate pace of consumption growth in the third quarter.

Meanwhile, the Institute for Supply Management’s manufacturing gauge slowed to 56.3 in July, from a reading of 57.8 the previous month. That compared with economists’ expectations for the manufacturing index to fall to 56.4.

Readings above 50 are meant to signal that output in the industry is rising.

The uptick in greenback pegged back recent advances in both the euro and sterling