ISM and ADP Beat Expectations, Oil Drops
Economic data was upbeat but a dive in oil prices led to a US dollar rally. A dive in oil prices helped boosted the US dollar to the top of the leaderboard while the commodity bloc lagged. Australian retail sales will keep the focus on the slumping Aussie dollar. Latest Premium Insights include special technical charts for silver weeklies. See more below.
The US economy showed better signs as ADP employment rose 162K compared to 140K expected. The enthusiasm was tempered by downward revisions to the two prior reports. The ISM non-manufacturing survey climbed to 55.1, beating the 53.4 consensus. New orders were strong but the employment component slipped to 51.1 from 53.8.
USD/JPY was the boosted by the numbers and more jawboning from Japanese politicians. The pair ran as high as 78.58.
Oil priced tumbled to $88 from $92. The fall is a surprise to some given the tensions in the Middle East. The currency crisis in Iran has sparked riots and Syria sparked an international incident after mortars crossed into Turkey, killing 5 civilians. NATA and the US have issued some strong words denouncing Syria.
The S&P 500 gained 5 points to 1451.
Australian data on August retail sales and building permits will be released at 0130 GMT. Yesterdays unexpectedly large trade deficit has weighed heavily on the Australian dollar and a miss from the +0.4% retail sales consensus could do the same. July building permits fell the most in nearly a decade in July; expectations are for a 4.7% rebound.
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