U.S. Session Recap – February 19, 2014

  • Empire State manufacturing index down from 12.5 to 4.5
  • U.S. TIC long-term purchases at -45.9B vs. 28.9B consensus, -28.08B previous
  • U.S. NAHB housing market index down from 56 to 46
  • Australian CB leading index up by 0.8%
  • Australian quarterly wage price index increased by 0.7%
  • Japanese all industries activity index, BOJ monthly report coming up

Not even the return of U.S. traders from their holiday was enough to steer the Greenback in a clear direction yesterday as the U.S. currency lost ground to the euro and franc but strengthened against the Kiwi, pound, and Aussie.

Data from the U.S. economy came in weaker than expected, with the Empire State manufacturing index slipping from 12.5 to 4.5 instead of landing at 9.9. U.S. TIC long-term purchases also came in way short of consensus as it showed a 45.9 billion USD deficit instead of the estimated 28.9 billion USD surplus, with China reducing its U.S. Treasury holdings. As for the housing market, the NAHB index dropped from 56 to 46 when analysts expected it to hold steady.

Earlier in today’s Asian trading session, Australia printed a 0.8% increase in its CB leading index and a 0.7% rise in the country’s quarterly wage price index. However, it appears that the Aussie is finding difficulty drawing support from these improvements as it continues to edge lower to the Greenback and the yen.

In the next few hours we’ll see Japan’s all industries activity index and the BOJ’s monthly report. The activity index might show a 0.3% increase, stronger compared to the previous 0.2% uptick, which might be bullish for yen pairs and the Nikkei.

See also:

London Session Recap

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