Fundamental News: August 13, 2013

 

The US Department of Treasury said yesterday that the Federal Budget Balance for July stood at -$97.6 billion, higher than the -$95.3 billion expected by surveyed analysts. Despite this figure, the government posted a budget deficit that is 38 percent smaller for the 10 months through July compared to a year earlier.

 

Today, Japan’s Cabinet Office reported that Core Machinery Orders declined 2.7 percent in June, surprisingly better than expected. Analysts were looking for a 7.1 percent decline after machinery orders advanced 10.5 percent last May.

 

In the latest Bank of Japan Meeting Minutes released earlier, it showed that members of the BOJ are expecting a positive turn in the CPI and the economy to experience moderate recovery.

 

In Australia, the National Australia Bank’s Business Confidence survey showed a minus 3 reading in July, the lowest reading for the index in the last 8 months. Over 400 firms reported weakness in a variety of sectors, including property, finance, and construction.

 

In the UK, Office for National Statistics reported that Consumer Price Index eased slightly to 2.8 percent in July. Producer Price Index Input rose 1.1 percent, House Price Index rose 3.1 percent, and Retail Price Index eased to 3.1 percent.

 

German and Euro-area ZEW Economic Sentiment both rose, 42.0 and 44.0 respectively. Meanwhile, Euro-area Industrial Production rose 0.7 percent (1.1 percent expected).

 

Later, focus will be on a few key US economic data such as Retail Sales, Import Prices, and Business Inventories.

 

Commodities News

 

Gold closed in on the $1,350 level yesterday, giving bulls a fourth bullish daily close in a row. Now, they need to fortify the $1,300 level so they can move price through $1,350-$1,400 with conviction.

 

 

Oil also moved higher in lock step with Gold yesterday. Buyers need to contend with sellers around $106-$108. $106 could serve as a line in the sand for this week while the extremes located at $102 and $108 remain in play.

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