U.S. Session Recap – April 16, 2014

  • US CPI up by 0.2% vs. 0.1% expected
  • US New York manufacturing index reading drops to 1.3, lower than last month’s 5.6 and the expected 8.2
  • US NAHB housing index prints at 47 vs. 49 estimates
  • CA manufacturing sales clocks in at 1.4 vs. 1.0 expected
  • Ukraine tensions escalate
  • Gold falls on sell stop triggers

The major currencies were all over the charts in yesterday’s U.S. session trading as a couple of factors affected individual price action.

Focus was on USD/JPY, which had dropped to the 101.50 area on accelerating tensions in Ukraine. Word on the forex grapevine is that Ukrainian military forces took an airfield controlled by separatists after the latter seized about a dozen buildings over the weekend. USD/JPY took a sharp turn back to the 102.00 area though, after a “leaked” Nikkei report suggested that the Japan’s Cabinet members would downgrade their economic outlook in their April report.

The Aussie was also a currency bear favorite especially after gold fell on triggered sell stops below a technical level and rumors that Chinese companies are using gold stockpiles in the shadow banking industry. It also didn’t help that AUD/USD was right below the .9400 psychological handle.

Over the next couple of hours we’ll not only see how the Asian markets react to the weak freshly-printed New Zealand inflation report, but also watch how they react to today’s Chinese data dump. At 2:00 am GMT the world’s second largest economy will release its quarterly GDP, industrial production, and retail sales numbers. Analysts are generally expecting weaker figures than in Q4 2013 so y’all better watch out for possible volatility around the report’s release!

See also:

London Session Recap

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