THE TAKEAWAY: USD Building Permits (AUG) > -1.0% month-over-month versus -1.9% m/m expected; 803K versus 796K expected > USD Housing Starts (AUG) > +2.3% m/m versus +2.8% m/m expected; 750K versus 767K expected > USDJPY BEARISH
The first batch of US housing data due this morning (with Existing Home sales due at 10:00 EDT / 14:00 GMT) has come across as mixed, hurting the US Dollar against the Japanese Yen. Building Permits declined by -1.0% m/m in August against an expectation of -1.9% m/m, with the annualized rate falling from 803K from 811K. According to a Bloomberg News survey, Building Permits were expected to fall by -1.9% to a 796K annualized rate; this data is slightly better than expected.
Housing Starts in August missed expectations, however, negating whatever positive impact the beat on Building Permits may have had. According to a Bloomberg News survey, Housing Starts were expected to grow at a rate of +2.8% m/m from July, but disappointed at a slightly slower clip of +2.3% m/m. The annualized rate increased to 750K from 733K, but below the 767K forecast.
USDJPY 1-minute Chart: September 19, 2012
Charts Created using Marketscope – Prepared by Christopher Vecchio
Following the releases, the US Dollar was generally mixed across the board, but the Japanese Yen was the clear winner in the aftermath. In the 30-minutes following the report, the USDJPY dropped from 78.78 to as low as 78.64, and was trading at 78.66 at the time this report was written.
--- Written by Christopher Vecchio, Currency Analyst
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