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The U.S. dollar traded mixed against the most major currencies after the disappointing U.S. retail sales. Retail sales were flat in July, missing expectations for a 0.2%rise, after a 0.2% increase in June.
Retail sales, excluding automobile sales, climbed 0.1% in July, missing expectations for a 0.4% rise, after a 0.4% gain in June.
Business inventories in the U.S. rose 0.4% in June, in line with expectations, after a 0.5% increase in May.
The euro traded mixed against the U.S. dollar after the weaker-than-expected economic data from the Eurozone. Eurozone's industrial production declined 0.3% in June, missing forecasts of a 0.5% rise, after a 1.1% fall in May.
German consumer price index increased 0.3% in July, in line with expectations, after a 0.3% rise in June.
French consumer price index dropped 0.3% in July.
The British pound fell against the U.S. dollar as the Bank of England lowered its forecast for wage growth in 2014. The BoE lowered its forecast to 1.25% from 2.5%.
The unemployment rate in the UK declined to 6.4% in in the three months to June, in line with expectations, down from 6.5% a month earlier. That was the lowest level since late 2008.
The claimant count declined by 33,600 people in July, exceeding expectations for a fall of 29,700, after a decrease of 39,500 people in June. June's figure was revised up from a decrease of 36,300.
But the average earnings index, including bonuses, dropped by 0.2% in the three months to June, missing expectations for a 0.1% decrease, after a 0.4% rise in the three months to May. The last month's figure was revised up from a 0.3% gain. That was first negative average earnings index since March-May 2009.
The average earnings index, excluding bonuses, increased by 0.6% in the three months to June, after a 0.7% rise in the three months to May.
The weak average earnings index may mean that the Bank of England will delay interest rate hike.
The Swiss franc traded mixed against the U.S. dollar. Swiss ZEW Economic Sentiment Index rose to 2.5 in August from 0.1 in July.
The New Zealand dollar increased against the U.S dollar due to the weak U.S. retail sales. No major economic reports were released in New Zealand.
The Australian dollar traded higher against the U.S. dollar after the strong Westpac Melbourne Institute Index of Consumer Sentiment for Australia and due to the weak U.S. retail sales. The Westpac Melbourne Institute Index of Consumer Sentiment for Australia climbed 3.8% in August, after a 1.9% gain in July.
Australia's Wage Price Index increased 0.6% in the second quarter, missing expectations for a 0.8% rise, after a 0.7% gain in the first quarter.
On a yearly basis, the Wage Price Index in Australia rose 2.6% in the second quarter, after a 2.6% increase in the first quarter.
The Japanese yen traded mixed against the U.S. dollar after the disappointing data from Japan and disappointing U.S. retail sales. Japan's preliminary gross domestic product dropped 1.7% in the second quarter, in line with expectations, after a 1.5% gain in the first quarter. The first quarter figure was revised down from a 1.6% rise.
The decline of GDP was driven by the tax hike in April.
On a yearly basis, Japan's preliminary gross domestic product slid 6.8% in the second quarter, after a 6.1% rise in the first quarter. The first quarter figure was revised down from a 6.7% increase.
The Bank of Japan released minutes from the BoJ's meeting on July 14 and 15. The central bank said that the country's economic recovery remains on track. The BoJ added that it will continue with the quantitative and qualitative monetary easing, aiming to achieve the inflation target of 2%.
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