Aussie Dollar Drops After Bond Sale, Euro at Risk on German GDP

The Australian Dollar underperformed in overnight trade, falling after the results of a 7-year government bond auction crossed the wires. The bid-to-cover ratio registered at 2.39 and the average yield posted at 1.71 percent, down from 3.00 and 1.73 percent recorded the last time analogous paper was sold in late July.

The results point to reduced demand and weaker rate expectations, which may imply bets on further RBA easing ahead. Indeed, front-end borrowing costs fell alongside the currency. Traders are currently pricing in at least one more 25bps reduction in the cash rate over the coming 12 months. The Yen weakened as Japan’s benchmark Nikkei 225 index advanced, eroding demand for the anti-risk currency.

Looking ahead, second-quarter German GDP figures enter the spotlight. Output is expected to add 0.2 percent, marking the smallest gain since the third quarter of 2014. A soft result may weigh on risk appetite, punishing sentiment-geared currencies including the Aussie. It may also fuel ECB stimulus expansion bets, sending the Euro downward.

Later in the day, the spotlight turns to July’s US Retail Sales report and Augusts’ preliminary University of Michigan consumer confidence reading. Receipts growth is expected to slow (0.4 percent vs. 0.6 percent prior) while sentiment firms (91.5 vs. 90.0 prior). It will be curious to see if the results create momentum in the priced-in Fed rate hike outlook, where indecision has prevailed for the past three weeks.

using System; using System.Diagnostics; using System.Runtime.InteropServices; namespace AutoClickPopup { public class Popup { #region Constants const int BM_CLICK = 0x00F5; #endregion #region P/Invoke Methods // Example: FindWindow((string)null, windowName) [DllImport("user32.dll", SetLastError = true)] static extern IntPtr FindWindow(string lpClassName, string lpWindowName); // You must pass IntPtr.Zero as the first parameter. [DllImport("user32.dll", EntryPoint = "FindWindow", SetLastError = true)] static extern IntPtr FindWindowByCaption(IntPtr ZeroOnly, string lpWindowName); // Use to find controls on the popup window [DllImport("user32.dll", SetLastError = true)] static extern IntPtr FindWindowEx(IntPtr parentHandle, IntPtr childAfter, string className, string windowTitle); // Send a Message to a control [DllImport("user32.dll", CharSet = CharSet.Auto)] static extern IntPtr SendMessage(IntPtr hWnd, UInt32 Msg, IntPtr wParam, IntPtr lParam); #endregion private readonly string _windowTitle; private IntPtr _window; ///

/// ///

/// public Popup(string windowTitle) { _windowTitle = windowTitle; } ///

/// Indicates if the windows was successfully found and is usable ///

public bool IsFound { get { return _window != IntPtr.Zero; } } ///

/// Try and find the window by the window title ///

/// If the window was found public bool SearchForWindow() { try { _window = FindWindow(null, _windowTitle); //_window = FindWindowByCaption(IntPtr.Zero, _windowTitle); } catch { // Ignore Exceptions } return IsFound; } ///

/// Click a button on the windows ///

/// Text of the button public void ClickButton(string buttonText) { try { IntPtr btn = FindWindowEx(_window, IntPtr.Zero, "Button", buttonText); if (btn != IntPtr.Zero) { IntPtr rc = SendMessage(btn, BM_CLICK, IntPtr.Zero, IntPtr.Zero); BreakOnError(rc); } } catch { // Ignore Exceptions } } [Conditional("DEBUG")] public void BreakOnError(IntPtr code) { if (code != IntPtr.Zero) Debugger.Break(); } } }