US new home sales fell short of expectations falling by 9.4% to 571K. However, the fall is from 630K in June, an upwards revision from the original release. The fall in July is attributed to supply rather than demand.
Nevertheless, the US dollar is falling across the board. Perhaps the publication serves as an excuse to extend the trend.
Sales of new homes were basically expected to remain unchanged: an annualized level of 611K in July against 610K in June (before revisions. Earlier,
Earlier, Markit released its preliminary PMIs: manufacturing missed expectations with 52.5 points for August, below 53.4 that was projected. The services PMI beat predictions with 56.9 instead of 55 points forecast.
The US dollar has been on the back foot. President Trump returned to being himself with a contentious speech in Phoenix. The Donald said that NAFTA could eventually be canceled and that he would risk a government shutdown for the wall.
Markets are quite unhappy with the prospects of a government shutdown and a potential default on US debt.
- USD/JPY was already moving higher but turned lower, trading around 109.10.
- EUR/USD advanced from the lows and flirted with the 1.18 level. German PMIs are looking good.
- GBP/USD was left behind, suffering as usual. Cable slipped under 1.28.
- USD/CAD was around 1.26, looking for a new direction.
- AUD/USD traded around 0.79, its favorite spot.
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