Business Inventories m/m comes in at 0.3% against 0.4% consensus

USD Business Inventories m/m came in at 0.3% for July, below the consensus expectation of 0.4%. This figure represents a -25.0% surprise compared to the consensus. The previous month’s reading was 0.5%.

Following the release, market reaction has been relatively subdued so far. AUDUSD moved +1.9 pips 15 minutes after the print, compared to its median 1-hour move of 8 pips after past releases. EURUSD was down -2.5 pips, against a median 1-hour move of 10 pips. GBPUSD saw a -1.9 pip move, with its median 1-hour move typically 13 pips. NZDUSD moved -0.2 pips, while its median 1-hour move is 7 pips. USDCAD was up +4.5 pips, compared to a median 1-hour move of 11 pips. USDCHF moved +2.7 pips, with its median 1-hour move at 9 pips. USDJPY was up +4.7 pips, against a median 1-hour move of 11 pips. XAUUSD moved -24 pips, compared to its median 1-hour move of 30 pips. These initial moves are generally smaller than the typical median 1-hour moves observed after past releases of this event.