US economic data returns to the spotlight on Thursday with inflation and jobless claims making the rounds early in North American trade. The inflation scorecard will dominate the headlines in the latter half of the week as traders eye US consumer prices on Friday.
Following a downbeat European session, North American trade begins with a report on Canadian housing starts at 12:15 GMT. Housing starts are projected to fall sharply to an annual pace of 219,500 in July compared with 248,100 the previous month.
Canada will report on new house prices at 12:30 GMT. The new house price index is forecast to creep up 0.1% in June.
In the United States, the Department of Labor will report on producer inflation at 12:30 GMT. The producer price index (PPI) is projected to rise 0.2% compared with June and 3.4% annually.
Labor will also report on weekly jobless claims at 12:30 GMT. The number of Americans filing for first-time unemployment benefits likely rose to 220,000 in the week ended 31 July compared with 218,000 during the previous period.
The Commerce Department will report on wholesale inventories at 14:00 GMT. The dataset, which is a key component of GDP, is forecast to flat-line in June.
Earlier in the day, the Chinese government reported better than expected inflation data, a sign that central bank policies were having their desired effect. China’s consumer price index (CPI) strengthened 0.3% in July and 2.1% annually. Factory-gate prices, as measured by the producer price index (PPI), rose 4.6% year-over-year.
AUD/USD
The Australian dollar drifted lower in the wake of Chinese inflation figures, though the downtrend was fairly contained. The AUD/USD exchange rate was down 0.2% at the time of writing to trade at 0.7418. In terms of technical details, the pair is eyeing immediate support at 0.7415, the session low, followed by 0.7381. On the opposite side of the spectrum, immediate resistance is located at 0.7437 followed by 0.7490.
EUR/USD
Europe’s common currency successfully reclaimed the 1.1600 US handle on Tuesday but was unable to make any significant breakthroughs. EUR/USD is currently trading at 1.1607. Initial downside is located at 1.1570, the low from 19 July. On the flipside, the pair faces resistance at 1.1630, followed by 1.1665.
GBP/USD
Cable is trading near an 11-month low as Brexit uncertainty continues to haunt investors. The GBP/USD exchange posted a tepid rally on Wednesday before prices swung back in the opposite direction. The pair is down 0.2% in Asia to trade at 1.2863. With the decline, cable has fallen through the immediate support located at 1.1270, raising the specter of a bigger reversal. Any upside is likely capped at the psychological 1.3000 mark.
