- US final services PMI at 55.0 vs. 54.2 previous
- US ISM non-manufacturing PMI up to 55.2 vs. 53.1 previous and 54.0 expected
- AU trade balance and RBA rate decision on tap
Ho hum. With the U.K. on a bank holiday and the U.S. not printing any surprises, the major currencies stayed in tight consolidations during the U.S. session.
Uncle Sam’s service sector activity supported last Friday’s strong NFP reading when it printed at 55.2, its fastest expansion in eight months. This helped the U.S. bond yields recover, as it was staying near its January lows (when the emerging markets were being boosted like there’s no tomorrow) before the report was released.
By the end of the day EUR/USD and GBP/USD are both about 20 pips from their intraday highs while USD/JPY is also off its Asian session lows. The dollar didn’t have as much luck from the comdolls though, as it ended the session down 20 pips against AUD and NZD and around 40 pips against CAD. Yikes!
The Aussie will be under the spotlight over the next couple of hours as Australia prints its trade balance numbers at 1:30 am GMT, followed by the RBA’s monetary policy decision at 4:30 am GMT. Market analysts aren’t expecting anything new from the central bank but keep an eye out for remarks regarding the Aussie’s current levels.
Good luck and good trading!
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!