US data reviewed supportive of the dollar - ANZ

Analysts at ANZ noted the overnight events and data that had the dollar on the rise.

Key Quotes:

"US July retail sales were much stronger than expected, with 10 of the 13 categories growing.

The data points to strong consumption at the start of Q3 and possible upward revisions to the Q2 GDP figures. The US economy is running above trend and that is consistent with the messaging from Dudley and other FOMC members about supporting another rate rise later this year.

The August Empire manufacturing index rose strongly to 25.2 vs July’s 9.8. That was the highest reading since September 2014. August NAHB index jumped to 68 showing sentiment amongst home builders is recovering. That would imply higher private sector construction activity ahead, and again indicates decent growth momentum in Q3. June business inventories rose 0.5% m/m, slightly higher than expected. It confirms decent momentum in manufacturing activity."