The greenback gained strength against the other major currencies on Tuesday, as the release of upbeat U.S. housing data lent strong support to the greenback. The U.S. Commerce Department said that the number of building permits issued last month jumped by 8.1% to 1.052 million units from June’s total of 973,000. Analysts expected building permits to rise by 2.5% to 1.0 million units in July.The report also showed that U.S. housing starts soared by 15.7% last month to hit 1.093 million units from June’s total of 945,000, beating expectations for an increase of 8.6% to 969,000 units.
A separate report showed that U.S. consumer prices rose 0.1% last month, meeting estimates, after rising 0.3% in June.Core consumer prices, which exclude food and energy costs, inched up by 0.1% last month, compared to expectations for a 0.2% gain. Core CPI rose 0.1% in June.
Trade in favor of the USD against all majors which includes buying USD/JPY, USD/CHF, USD/CAD and selling EUR/USD. GBP/USD, AUD/USD, NZD/USD.
Meanwhile, the New Zealand dollar was lower after weak inflation reports on Tuesday indicated that the Reserve Bank is likely to keep rates on hold following recent rate hikes.