USD grows after Fed comments

USD grows after Fed comments

On Friday, the evergreen buck held firm, backed by comments from a Fed speaker, suggesting that an American interest rate hike this year is still real because inflation pressure keeps growing.

American retails sales data along with a series of Chinese economic indicators due later in the day will be the market's next key focus points, though trading could be slow with many investors in Japan on leave this week for the summer holidays.

The dollar's index against a basket of six key counterparts edged up to 95.906 from this week's minimum of 95.442 achieved on Wednesday, though it will probably conclude the week lower, having lost approximately 0.3% so far.

The evergreen buck appears to be on a much more substantial footing than when financial markets were worried about the actual impact of Brexit. It might take time a bit but its direction is definitely looking upwards.

Against the Japanese yen, the evergreen buck firmed to 101.83 yen from this week's minimum near 101 yen, although it stood still on the week so far.

Aussie goes down on disappointing China data

The Australian dollar sagged on gloomy data out of key trading partner China on industrial output, retail sales as well as fixed-asset investment.  

China’s fixed-asset investment for July soared 8.1%, below a pace of 8.8% observed year-on-year, while  industrial production acquired 6.0%, also below an expected at 6.1% year-on-year revenue, while retail sales headed north 10.2% under the expected up 10.5% year-on-year growth observed.

The currency pair AUD/USD traded down 0.26%, hitting 0.7190, while USD/JPY was worth 102.15, up 0.19%.

Earlier, in New Zealand, the Business NZ PMI tumbled to 55.8 for July, sagging from a previous reading of 57.7. Moreover, core retail sales for the second quarter leapt 2.6%, better than the quarter-on-quarter reading observed up 1.1%. As for full retail sales, they spiked too, approximately up 2.3%, compared to a 0.9% quarter-on-quarter revenue observed and an annual pace of 6.0%, thus outpacing the 4.9% expected from the same quarter a year ago.

The currency pair NZD/USD hit 0.7195, showing a 0.21% sag after of the figures and also a statement that the major bank would delay measures just to curb house loans.

Bazooka

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