New home sales are up 5.7% to 552K, up from an upwards revised 522K in July. This is good news for the housing sector, with solid showings in the summer months.
The US dollar is marginally stronger, with EUR/USD sliding from the highs to 1.1255, USD/JPY stabilizing at 119.44, GBP/USD sliding towards 1.5260. The gains are quite small and it seems that markets want to sell the greenback.
Sales of new homes were expected to rise by 1.6% to 515K in August after 507K in July (before revisions). While most sales are of second hand homes, sales of new homes trigger wider economic activity and go hand in hand with general growth.
The US dollar was on the back foot before the publication, mostly due to the data. Earlier, durable goods orders disappointed: the core number remained flat, showing lackluster investment.
More: Focus shifts to the safe havens – watch out for Yellen
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