The greenback is gaining position amid less attention to the tension linked with the nuclear threat from North Korea. This fact resulted in more attention to macro statistics. Thus, the EUR/USD was under pressure from the weaker than expected growth of German GDP in the second quarter. This, according to the preliminary report was only 0.6% vs forecasted 0.7%. The positivity for the bulls in the US dollar is due to the retail sales growth in America up by 0.6% in July, twice better than the average prediction. Retail sales are the key indicator for consumption driven American economy. An additional factor that added strength to the dollar was the increase of Empire State manufacturing index to 25.2 vs 9.8 in the previous period.
The sharp decline today has been seen in the price of the GBP/USD due to an increase of the consumer price index in the UK by only 2.4% in July against anticipated growth by 2.5%. Slower inflation growth may restrain the Bank of England from raising interest rates which is negative for the bulls in the pound Sterling. Tomorrow the center of attention will be the retail sales report in the UK.
The AUD/USD is still under pressure of lowering prices on commodity markets and the USD growth. The statement from the RBA according to which the interest rate remained at the 1.50% level, had limited impact on the quotes. The central bank has concerns about possible declines in spending due to the low pace of wage increase in the country. Traders are waiting for the labor market report in Australia that will be published tomorrow at 01:30 GMT.
EUR/USD
The single currency quotes accelerated its fall after a slight correction. Now the quotes are rebounding after testing the support at 1.1700. In the case of overcoming this level we may see a continued decline to the next targets at 1.1620 and 1.1500. The upward correction is likely to be limited by the upper limit of the channel and the resistance at 1.1800.
GBP/USD
After some consolidation above the important 1.2950 level the quotes have shown a sharp decline. The overcoming of 1.2880 may be the stimulus for a continued drop to 1.2800 and 1.2635. In order to change the trend to positive, the quotes need to fix beyond the limits of the descending channel and in this case the potential goal will be at 1.3250.
AUD/USD
The aussie has reached the lower limit of the descending channel and may test the important support at 0.7800. After the fall and considering the RSI on 15-minute chart being in the oversold zone there is an increased possibility of an upward correction with a potential of increase to 0.7850-0.7900. In case of breaking through to 0.7800 we may see a decline to 0.7740 and 0.7700.
