Forex Daily Outlook – July 26 2010

Starting the week with interesting news with New Home Sales in the US, PPI in Australia, and Trade Balance in Japan. Let’s see what awaits us today.

In the US, the Annualized number of new single-family homes that were sold during the previous month increased by 17K. It’s a leading indicator of economic health with a wide-reaching ripple effect.

In Australia, Producer Price Index (PPI), monthly report that measures the change in the price of finished goods and services sold by producers increased by 0.5%. It’s a leading indicator of consumer inflation – when producers charge more for goods and services the higher costs are usually passed on to the consumer.

For more on the Aussie, read the  AUD/USD forecast.

In Japan, Adjusted Merchandise Trade Balance increased by 0.12T, the monthly report that measures the difference in value between imported and exported goods during the reported month. Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation’s exports. Export demand also impacts production and prices at domestic manufacturers.

More in Japan, Corporate Services Price Index (CSPI) deceits by 0.1%   monthly report that measures the change in the price of services purchased by corporations. It’s a leading indicator of consumer inflation – when corporations pay more for services the higher costs are usually passed on to the consumer.

That’s it for today. Happy forex trading!

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