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Ground Gained on Bullish Payrolls Lost

US Engulfed by Wave of Bad Data Again


All ground gained by the US from its bullish nonfarm payroll report from July was lost Friday after a string of poor data. All four major reports that give a status report of the US economy fell short of expectations as hopes for the Fed to increase interest rates by the end of the year seemed to fade.

Last Week


On Friday, weak retail sales brought the chances of a September rate hike down to virtually zero. Retail sales came up short its forecast as core sales were reported down -0.30%. In reaction to Friday’s US data, the Greenback fell against all the major currencies. Americans consume more than any nation in the world and reports of a slowdown are a major red flag about the state of the American economy. US Retail Sales in July were expected to rise 0.40%.

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This Week


In June, US Building Permits increased and showed major promise during the end of the second quarter. After two months of declines, the metric jumped 1.50% to 1.150 million in June, Also, Housing Starts data spiked 4.80% to a rate of 1.189 million homes after a bearish report in May. The increased strength of the housing market is directly correlated to the strong US labor market and permits for July are expected to continue the uptrend to 1.16 million.

In New Zealand, the employment sector saw a boom in its first quarter with a 1.20% increase in jobs in comparison to the fourth quarter of last year. On Tuesday, the RBNZ predicts slower growth during the second quarter of 0.60% and unemployment is forecasted to drop to 5.30%.

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