Australian Exports, European Retail Sales Surprisingly Rebound

[B]Fundamental Headlines[/B]

• [B]AUDUSD [/B]– Australian exports surged to a record high as Asia’s emerging markets’ demands climbed for iron ore and coal. In May, exports rose 1 percent to A$21.9 billion, suggesting that overseas shipments will support economic growth this year. April’s trade balance was revised up to a A$12 million surplus, for the first time in six years. The rising sales abroad are helping offset domestic economic woes, as domestic spending declines amid 12-year high interest rates and oil prices. For more news and resources, visit our Australian Dollar Currency Room
• [B]USDCHF [/B]– Rising energy costs surged, pacing Swiss inflation to their fastest rate in nearly 15 years in June. The Swiss Consumer Price Index rose 2.9 percent on a year over year basis, the highest rate since October 2003. Although the SNB left their benchmark interest rate unchanged last month, citing the accelerated rate of inflation as “transitory”, continued dwindling consumer purchasing power might force the central bank to change their outlook in the near future. For more news and resources, visit our Swiss Franc Currency Room.
• [B]EURUSD [/B]– European retails sales rose an unexpected 0.2 percent in May, after a record 3.0 percent decline in April. Economists had been expecting a 0.7 percent drop, pointing to deteriorating consumer spending as commodities and living costs rise. Despite the increase in May sales, future consumer spending prospects remain bleak. As inflation rises, the ECB is cornered into a hawkish bias, but with growth stagnating, they cannot completely focus on inflationary pressures. Discuss the topic and your trade ideas in the EUR/USD Forum.
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