Daily FX Trading Update: AU Data Disappoints, RBA Next

The US dollar was stuck in consolidation against most of its forex counterparts since US banks were closed for the Fourth of July holiday. US factory orders data are up for release today and a 0.8% decline is eyed, following the previous 1.9% increase. FOMC member Dudley also has a speech lined up.
The euro struggled to hold on to its gains after data from the region came in mixed. The Spanish unemployment change report showed a stronger than expected 124.3K reduction in joblessness while the euro zone Sentix investor confidence figure slumped from 9.9 to 1.7, worse than the estimated drop to 8.1. Final services PMI readings are due today along with the euro zone retail sales report.
The pound consolidated against its rivals as traders continued to wait for more updates from the UK. The construction PMI came in weaker than expected as it fell from 51.2 to 46.0, reflecting industry contraction. For today, the services PMI is due and a dip from 53.5 to 53.1 is eyed. BOE Governor Carney also has a speech scheduled.
The franc barely made any headway as traders are being careful of additional SNB intervention. There were no reports out of Switzerland then and none are due today so risk sentiment could push franc pairs around.
The yen gave up more ground on improving risk appetite as there were no reports out of Japan yesterday. There are still no reports lined up today so risk sentiment could stay in play.
Commodity Currencies (AUD, NZD, CAD)
The comdolls continued to advance led by the Loonie, even though data from Canada came in weaker than expected. The quarterly BOC Business Outlook Survey was also mostly downbeat, although it suggested a potential rebound in services and non-energy firms. In Australia, retail sales and trade balance figures missed expectations with a meager 0.2% uptick in consumer spending and a wider trade deficit of 2.22 million AUD. New Zealand has its GDT auction scheduled in the next Asian session.
To contact the reporter of the story: Samuel Rae at samuel@forexminute.com
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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.