THE TAKEAWAY: AUD Building Approvals decline far worse than expected at -13.0% y/y > German July CPI comes in slightly above expectations at +1.9% y/y > US Consumer Confidence misses expectations, coming in at 80.3

Today is the beginning of an event-laden economic week. First in Asia-Pacific, Australia printed a very negative -13.0% y/y change in Building Approvals during June, below the 0.0% change expected by Bloomberg News survey analysts. Several hours later, RBA Governor Stevens said that 2Q inflation data suggests there is still room to lower rates if necessary and that he would not be surprised if the AUD were to depreciate further.

In Europe, Spain released 2Q GDP that contracted less than analysts surveyed by Bloomberg News expected: -1.7% y/y actual; -1.8% expected. Germany also reported better than expected CPI numbers, coming in at +1.9% y/y during July, higher than the Bloomberg News survey expected +1.7%.

Lastly in the US, Consumer Confidence declined to 80.3, below the 81.3 figure that Bloomberg News survey analysts expected. However June’s Consumer Confidence number was revised up to 82.1, up from 81.4.

The Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) gains +54 (+0.50%) to $10790 at the time of writing. The Dollar Index did reach as high as 10803 around 14:30 GMT.

AUDUSD 15-minute Chart: July 30, 2013
Charts Created using Marketscope – prepared by Kevin Jin

The AUDUSD is the largest decliner today at -1.61% at the time of writing. Earlier today RBA Governor Stevens hinted at further easing. The two large falls coincide with first the poor economic data and second with Gov. Stevens’ speech.

GBPUSD 15-minute Chart: July 30, 2013
Charts Created using Marketscope – prepared by Kevin Jin

The GBPUSD is modestly weaker by -0.64% at the time of writing. The decline came in two waves: the first shortly after London Open and the second wave soon after New York Open.

EURUSD 15-minute Chart: July 30, 2013
Charts Created using Marketscope – prepared by Kevin Jin

The EURUSD is flat today, at the time of writing. The pair indecisively moved up to $1.3300 before New York Open and subsequently retraced all these gains shortly thereafter.

USDJPY 15-minute Chart: July 30, 2013
Charts Created using Marketscope – prepared by Kevin Jin

The USDJPY is slightly lower by -0.12% at the time of writing. The pair traded in a range between ¥98.00 and 98.50 throughout the day.

— Written by Kevin Jin, DailyFX Research

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Source: Daily fx