The dollar continues to pull back from recent rally as it lacked stimulus for further rise. The dollar index is now at around 82.3 level after surging to as high as 82.72 earlier this week. The greenback is mildly softer against European majors and yen but remains in tight range so far. Though, clearer weakness is seen against commodity currencies. The USD/CAD's break of 1.08959 support confirmed near term topping and we'd likely see deeper correction. The AUD/USD also extended the rebound form 0.9236 and is possibly heading back towards 0.9504 resistance. Nonetheless, the NZD/USD lags behind and is trading below 0.8429 near term resistance and maintains near term bearish outlook.
Australian dollar is lifted by investment data released today. Private capital expenditure rose 1.1% in Q2 versus expectation of -0.8% fall. Some analysts noted that the data showed that adjustment in non-mining sectors could be slower than originally expected. But overall, there is no change in the general consensus that RBA will keep rates unchanged for the rest of the year.
The economic calendar is a rather busy today. Eurozone will release confidence indicators which are expected to show further deterioration in August. Eurozone M3 is expected to be unchanged at 1.5% yoy in July. German will release CPI and unemployment. From US, Q2 GDP revision will be released and is expected to be revised slightly down to 3.9%. US will also release jobless claims and pending home sales.
The recovery in Aussie helps pushed the GBP/AUD through 1.7735 support which confirmed resumption of whole decline from 1.9185. Near term outlook is bearish for 61.8% projection of 1.9185 to 1.7735 from 1.8374 at 1.7478 next. Overall, it's viewed as a correction as the whole medium term up trend from 1.4380 and should target 38.2% retracement of 1.4380 to 1.9185 at 1.7349 and below.